President William Ruto signed into law the Division of Revenue (Amendment) Bill, 2024, the Rating Bill 2022, and the Water (Amendment) Bill, 2024.
The Division of Revenue (Amendment) Act, 2024, which was introduced by Ndindi Nyoro, chair of the Budget and Appropriations Committee, allocates sh. 387 billion as an equitable share of revenue to counties for the 2024/2025 financial year.
This amount comes after a revision of the original allocation. Initially, the Finance Bill, 2024, proposed sh. 400 billion for counties, but President Ruto‘s rejection, following widespread protests, led to a downward adjustment to sh. 380 billion.
After discussions, both the National Assembly and the Senate agreed on sh. 387 billion, which accounts for 24.67% of the most recent audited revenue.
Despite the reduction, the allocation to counties increased by sh. 2 billion from the sh. 385 billion allocated in the 2023/2024 financial year.
This amount exceeds the constitutional minimum threshold of 15% for county revenue sharing.
The Act also allocates sh. 2.2 trillion to the national government.
Meanwhile, the Rating Act, 2024, sponsored by Majority Leader Kimani Ichung’wah, establishes a standardized framework for property valuation and rating.
It provides counties with clear guidelines on how to assess property values and impose rates.
The law also creates the office of the Chief Government Valuer, who will serve as the primary advisor to both national and county governments on valuation matters.
The Water (Amendment) Act, 2024, also sponsored by Ichung’wah, facilitates public-private partnerships to finance water development projects managed by national government agencies.
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