President William Ruto during a meeting with Spain President Pedro Sánchez Pérez-Castejón on the sidelines of the Fourth International Conference on Financing for Development in Seville, Spain on June 30, 2025
All eyes are now on President William Ruto over the release of funds to counties after Parliament yesterday approved Sh415 billion as equitable revenue share to the devolved units for the financial year ending June 30, 2026.
The development came after senators passed the Division of Revenue (Amendment) Bill, 2025 placing the ball in the President’s court to assent to the Bill as the new financial year begins.
President Ruto’s signing of the Bill into law will pave the way for the National Treasury to start disbursing funds to the 47 counties to support their operations.
On Monday, 32 senators voted in favour of the mediated version of the Division of Revenue Bill, allocating counties Sh415 billion.
County governments were allocated Sh387.43 billion in the just-concluded fiscal year following the withdrawal of the Finance Bill 2024 after a fierce pushback by Gen Z protesters.
“The result of the division is as follows: Ayes 32, Nays 0, and Abstentions 0,” said Senate Speaker Amason Kingi.
The Bill is a key piece of legislation that once enacted provides for the equitable division of revenue raised nationally between the national and county governments each financial year.
The law requires that at least two months before the end of the financial year, the Bill determining how nationally raised revenue will be divided between the two levels of government must be enacted.
Proposed shareable revenue
On April 9, 2025, the National Assembly passed the Bill allocating Sh405.1 billion as shareable revenue and transmitted it to the Senate for concurrence as required by Article 110(4) of the Constitution.
However, on May 28, 2025 the Senate passed the Bill with amendment raising the proposed shareable revenue to Sh465 billion. On June 3, 2025, the National Assembly rejected the Senate's amendments, prompting the Speakers of both Houses to nominate nine members each to a mediation committee.
The mediation team initially struggled to reach consensus with both sides holding firm to their proposed figures.
In the second meeting, the Senate reduced its proposal to Sh425 billion while the National Assembly team countered with Sh410 billion. Senators argued that counties are burdened with non-discretionary expenditures triggered by national policies such as the Affordable Housing Levy enhanced contributions to the National Social Security Fund, payments to the Social Health Authority and stipends for community health promoters.
They also accused the national government of withholding funds meant for devolved functions.
However, MPs contended that the country’s constrained fiscal space and poor ordinary revenue collection could not support the higher allocation.
As the committee made slow progress and the financial year-end approached risking a fiscal crisis in counties, President Ruto was forced to intervene. Following his intervention and consultations with the National Treasury, the mediation team finally agreed on Sh415 billion as the shareable revenue to counties ending the protracted stalemate.
President Ruto reportedly made it clear that he did not want a standoff with governors and encouraged both parties to be realistic in their demands.
Presenting the mediated version of the Bill before the Senate, Budget and Appropriations Committee, Chairperson Samuel Atandi acknowledged the critical role played by the President and the Treasury in brokering the deal.
