Cabinet Greenlights Landmark Bill to Fast-Track County Funding Amid Public Finance Overhaul
The Cabinet has endorsed the Public Finance Management (Amendment) Bill, 2025. This legislation targets longstanding bottlenecks in the disbursement of funds to county governments, promising a more streamlined and reliable mechanism for financial transfers that could transform local service delivery and economic planning.
The core of the bill lies in its innovative restructuring of how additional allocations reach the counties. Currently, the County Governments Additional Allocations Bill handles all such funding in a single package, leading to protracted delays in its annual passage through Parliament. These holdups have repeatedly hampered critical operations, from routine healthcare provisions and vital infrastructure upgrades to ambitious housing programs and grassroots development efforts. By the end of each fiscal year, counties often find themselves scrambling to catch up, with projects stalling and essential services at risk.
To address this, the proposed amendments call for dividing the existing bill into two distinct statutes. The first would exclusively manage allocations drawn from the National Government's portion of revenue collections, ensuring these domestic funds flow without entanglement from external variables. The second would concentrate on inflows from international loans and grants sourced through development partners, allowing for specialized handling that aligns with donor timelines and conditions. This bifurcation is designed to slash bureaucratic red tape, accelerate the uptake of both local and foreign resources, and inject greater efficiency into the overall public finance architecture.
Proponents argue that these changes will not only expedite fund releases but also cultivate a culture of fiscal discipline and transparency. Enhanced coordination between the National Treasury and county finance offices stands to benefit immensely, as the bill emphasizes stronger intergovernmental partnerships. Accountability measures will be sharpened, compelling all levels of government to track resource utilization more rigorously. In turn, this could deepen fiscal ties across the nation, encouraging collaborative ventures that leverage combined strengths for nationwide progress.
The initiative enjoys backing from key parliamentary figures, with Majority Leader Kimani Ichungwah tabling the bill for deliberation in the National Assembly. Among its technical provisions, the legislation seeks to excise specific clauses from the foundational Public Finance Management Act—namely sections 191(a), (b), (c), (d), and (e)—to pave the way for the new dual-track system. Once enacted, this overhaul is poised to deliver a stable fiscal backbone for devolution, empowering counties to forecast budgets with confidence and execute high-impact initiatives without the shadow of funding shortfalls.
As Kenya navigates its ongoing public finance reforms, this bill emerges as a pivotal tool in the government's toolkit. It underscores a commitment to devolution's promise: equitable resource sharing that fuels localized growth while safeguarding national priorities. Stakeholders from county assemblies to development agencies are watching closely, anticipating how these reforms might ripple through community-level projects in the coming budget cycles. With the National Assembly's review underway, the path to faster, fairer funding for Kenya's 47 counties appears clearer than ever, potentially marking a turning point in the nation's decentralized governance journey.