Africa-Press – Kenya. The Cabinet has approved the Public Finance Management (Amendment) Bill, 2025, which seeks to accelerate the flow of funds to county governments and strengthen devolution through faster, more efficient financial disbursements.
The Bill introduces a significant reform to the current budget process by splitting the County Governments’ Additional Allocations Bill into two separate pieces of legislation.
Under the proposed framework, Parliament will handle two distinct Bills: one covering allocations drawn from the National Government’s share of revenue, and another focusing on allocations funded through loans and grants from development partners.
According to the Cabinet, this separation will simplify the legislative process and ensure that county governments receive funds on time, even when external financing arrangements are still being finalised.
For years, delays in enacting the annual Additional Allocations Act have disrupted essential services and slowed local development projects, including health services and infrastructure initiatives.
The reform is designed to address these persistent delays by providing a more predictable and efficient framework for financial transfers.
“The amendment is a bold step toward entrenching fiscal discipline, ensuring timely disbursements, and strengthening devolution as envisioned under the Constitution,” part of the Cabinet brief read.
The reform aligns with the government’s broader agenda to enhance public finance management, improve coordination between national and county treasuries, and promote accountability in the use of public resources.
By separating the two funding streams, the government hopes to reduce bureaucratic delays and improve the absorption of both domestic and donor-funded resources.
The Bill, sponsored by Majority Leader Kimani Ichung’wah, is currently before the National Assembly. It proposes the repeal of sections 191 a, b, c, d, and e of the principal Act.
In addition to strengthening service delivery, the reform is expected to deepen intergovernmental fiscal relations and foster collaboration between county administrations and the National Treasury.
Cabinet expressed confidence that once enacted, the Public Finance Management (Amendment) Bill, 2025 will mark a significant milestone in Kenya’s devolution journey, ensuring counties have the financial resources they need to deliver quality services and drive local development.
Governors have, over the years, accused the national government of delaying the release of funds to counties, a practice that has negatively affected service delivery.
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