President William Ruto has signed two bills into law, paving the way for the allocation of KSh71.09 billion in additional funding to county governments for the 2026/2027 financial year.
The President assented to the County Governments Additional Allocations Bill, 2026, and the County Assembly Services Amendment Bill, 2023, during a ceremony at Eldoret State Lodge on Monday, October 19, 2026.
The two laws seek to strengthen devolution by providing additional resources to county governments while introducing clearer procedures for the administration of county assembly staff and service boards.
The County Governments Additional Allocations Act provides for the transfer of KSh71,091,926,967 to counties through allocations from the national government’s share of revenue and resources from development partner loans and grants.
The amount represents an increase of KSh425.6 million from the KSh70.67 billion allocated to counties in the previous financial year.
Speaking during the presentation of the bills for presidential assent, Deputy Chief of Staff Josephat Nanok said the additional funding would support county infrastructure and healthcare programmes.
“The bill is much awaited by the county governments so that they can make due appropriation and utilize the funds,” Nanok said.
He noted that part of the funding would supplement the construction of county headquarters, while other allocations would support healthcare workers transitioning to Primary Healthcare Network (PNV) terms and Community Health Promoters.
“The conditional allocations from national government’s share will go a long way to supplement the construction of county headquarters,” he said.
Nanok added: “The funds will also assist in meeting the obligations for universal health coverage staff who are transitioning to PNV terms.”
He further confirmed that the legislation provides funding for Community Health Promoters, who play a key role in delivering healthcare services at the community level.
New accountability measures
The County Governments Additional Allocations Act also introduces reporting requirements intended to strengthen accountability in the management of funds transferred to counties.
Under the law, the Cabinet Secretary responsible for the National Treasury is required to publish quarterly reports detailing actual transfers to county governments by the 13th day after the end of each quarter.
County treasurers are also required to record conditional allocations received from the national government in their accounts and include the funds in consolidated quarterly and annual reports.
In addition, conditional allocations must be incorporated into national government budget estimates and submitted to Parliament for approval.
The measures are intended to improve transparency and enable oversight institutions to track the movement of funds from the national government to county administrations.
However, the impact of the additional funding will depend on timely disbursements, proper budgeting and the effective implementation of projects and services at the county level.
Nanok said the law would take effect upon publication in the Kenya Gazette.
New safeguards for county assembly staff
The second law, the County Assembly Services Amendment Act, 2023, seeks to address governance and administrative challenges affecting county assemblies.
The legislation introduces clearer procedures for the removal of members of county assembly service boards, the suspension or removal of county assembly clerks, the supervision of employees and the protection of the rights and benefits of staff on secondment.
According to the Senate Clerk, the bill was sponsored by Marsabit Senator Mohammed Chute to address disputes and administrative uncertainty within county assembly services.
“It is a bill whose primary objective is to address the governance challenges that have beset the civil service of our county assemblies,” the Senate Clerk said.
He noted that county assemblies had experienced disputes involving the removal and threatened removal of board members, clerks and other employees.
“There has been quite a bit of upheaval in the civil service of the county assemblies with the removal and threats of removal of county assembly board members, clerks and staff,” he added.
The new law seeks to establish a clearer legal framework for handling disciplinary and administrative decisions, while safeguarding the rights of affected employees.
Its effectiveness will depend on county assemblies adhering to the prescribed procedures and consistently applying the law.
What the new laws mean for Kenyans
The two laws address separate aspects of devolution: the financing of county government responsibilities and the administration of county assembly services.
The additional KSh71.09 billion is expected to support county infrastructure, healthcare programmes and other devolved functions, while the amendments to county assembly services seek to strengthen administrative stability and protect employees’ rights.
The Senate Clerk said the County Governments Additional Allocations Bill was introduced in the Senate by Mandera Senator Ibrahim Ali Roba and passed by both Houses of Parliament without recourse to mediation.
With presidential assent secured, attention now shifts to the gazettement and implementation of the laws, the disbursement of funds and how county governments utilise the additional resources.
