NAIROBI, Kenya, Dec 4 – President William Ruto has signed into law three key bills aimed at enhancing county financing, property valuation, and water infrastructure development.
The signing took place at State House, Nairobi on Wednesday morning.
The bills include the Division of Revenue (Amendment) Bill, 2024; the Rating Bill, 2022; and the Water (Amendment) Bill, 2024.
Division of Revenue (Amendment) Act, 2024
The Division of Revenue (Amendment) Act provides Sh387 billion as the equitable share of revenue to counties for the 2024/2025 financial year. This figure represents 24.67 per cent of the most recently audited revenue, significantly surpassing the constitutional minimum threshold of 15 per cent.
The allocation comes after protracted negotiations between the National Assembly and the Senate, which settled on Sh387 billion following the rejection of an earlier proposal of KSh400 billion. A subsequent review had adjusted the figure to Sh380 billion before the final agreement.
Additionally, the Act allocates Sh2.2 trillion to the National Government, reaffirming its commitment to equitable resource distribution.
Rating Act, 2024
The Rating Act establishes a standardized framework for counties to assess property values and impose rates. It aims to provide uniform guidelines for valuation and rating, promoting transparency and efficiency in county revenue collection.
Water (Amendment) Act, 2024
The Water (Amendment) Act facilitates Public-Private Partnerships (PPPs) to finance the development of water infrastructure by national government agencies. This move is expected to bolster investments in the water sector and improve access to water services.
President Ruto emphasized the importance of these legislative changes in streamlining governance and fostering development across the country.
“These laws will enhance efficiency in revenue allocation, improve property management systems, and accelerate infrastructure development in critical sectors such as water,” he said.
