President William Ruto signed into law three Bills on Wednesday at State House, Nairobi.
The President assented to the Division of Revenue (Amendment) Bill, 2024, the National Rating Bill 2022, and the Water (Amendment) Bill, 2024.
The Division of Revenue (Amendment) Act, 2024, provides KSh387 billion as equitable share of revenue to counties for the financial year 2024/2025.
Initially, KSh400 billion was allocated as equitable share, but this was reviewed downwards to KSh380 billion following the Finance Bill’s withdrawal.
Eventually, the National Assembly and the Senate struck an agreement and set KSh387 billion for counties, representing 24.67 per cent of the most recent audited revenue accounts.
Despite the revenue shortfall, the amount going to counties rose by KSh2 billion from the KSh385 the devolved units had received in the 2023/2024 financial year.
This is way above the 15 per cent minimum constitutional requirement. The Act has allocated KSh2.2 trillion to the National Government.
The National Rating Act, 2024, creates a standard framework for valuation and rating, and lays clear guidelines on how counties should assess property value and charge rates, among others.
In addition, the Water (Amendment) Act, 2024, provides for public-private partnerships in financing the development of water works by National Government agencies.
