Counties will get Ksh387 billion as equitable share of revenue after President William Ruto Wednesday morning assented to the Division of Revenue (Amendment) Bill, 2024.
In addition, two other bills—the Rating Bill 2022 and the Water (Amendment) Bill, 2024—have also been signed into law.
The Division of Revenue (Amendment) Act, 2024, provides KSh387 billion as equitable share of revenue to counties for the financial year 2024/2025.
Initially, the Finance Bill, 2024, had allocated Ksh400 to counties, but the Bill’s rejection forced the figure to be reviewed downwards to Ksh380 billion.
Eventually, the National Assembly and the Senate struck an agreement at Ksh387 billion for counties, representing 24.67 per cent of the most recent audited revenue which is way above the 15 per cent minimum threshold constitutional requirement.
The Act has allocated Ksh2.2 trillion to the National Government. The Rating Act, 2024, creates a standard framework for valuation and rating, and clear guidelines for counties on how to assess property values and impose rates, among others.
The Water (Amendment) Act, 2024, provides for Public-Private Partnerships in financing the development of water works by National Government Agencies.
