Ruto Increases County Funding by Ksh28 Billion

President William Ruto has paved way for the disbursement of a record Ksh415 billion to all 47 county governments in the new financial year after signing into law the County Allocation of Revenue Bill 2025.
Ruto assented to the bill on Wednesday, August 13, saying the new development represented an increase of up to Ksh28 billion from last year’s allocation which stood at Ksh387.4 billion.
“We have increased the equitable share of revenue to Ksh415 billion among our 47 Counties, representing a rise of almost Ksh30 billion from the previous financial year’s Ksh387.4 billion,” Ruto said, moments after assenting to the bill.
“The significant increase in the funds underpins our commitment to mobilising more resources to support devolution and boost service delivery to the people at the grassroots,” he said.
Distribution of the funds will be guided by the Fourth Basis Formula for Revenue Sharing, which considers factors including population size, land area, poverty levels, and development needs to ensure fairness and address regional disparities.
With this in mind, populous counties are set to reap the largest share of the allocation per a revenue-sharing formula approved by Parliament. Nairobi county, for example, is set to receive Ksh21.4 billion.
Nakuru County comes in second with an allocation of Ksh14.4 billion with Turkana County (Ksh13.89 billion), Kakamega County (Ksh13.6 billion), and Kiambu County (Ksh13.07 billion) rounding off the top five counties with the largest allocation.  Lamu County receives the smallest allocation at Ksh3.85 billion.
The County Allocation of Revenue Bill, 2025 establishes a clear legal and financial framework to ensure transparency and accountability in funds usage. For one, all transfers are to be recorded in county treasuries’ financial statements and deposited into County Revenue Funds according to a payment schedule approved by the Senate.
More to follow…