Ruto: We’ve bankrolled devolution with Ksh4T, counties must now deliver
President William Ruto has said the national government has settled all balances owed to county governments, closing the books for the just-ended financial year.
Speaking on Wednesday, August 13, 2025, at the Devolution Conference in Homa Bay, he framed the move as a demonstration of his administration’s commitment to strengthening devolution, even in the face of limited fiscal space.
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He noted that over the 12 years since devolution was introduced, the government has disbursed a cumulative total of Ksh4 trillion to counties, ensuring that every part of the country now benefits from a functional county government.
Ruto stressed that while financial resources may not always meet every need, there is still enough to deliver meaningful services to citizens. The bigger challenge, he emphasised, lies not in the scarcity of funds but in ensuring efficient and effective use of the resources available.
“Despite operating within a tough fiscal space, the government has cleared all balances owed to counties in the just-ended financial year. In the 12 years since the birth of devolution, we have transferred a total of Sh4 trillion to counties. Every corner of Kenya now has a functional county government,” he stated.
Adding;
“While we may not have all the resources we desire, we have enough to deliver meaningful services to our people. Our greatest challenge is not the inadequacies of resources but how we utilise what we have.”
County Allocation of Revenue Bill, 2025
Ruto’s remarks come the same day he assented to the County Allocation of Revenue Bill, 2025, at State Lodge, Homa Bay, setting the equitable share for counties in 2025/26 at Ksh415 billion, up from Ksh387.4 billion the previous year.
The law applies the new revenue-sharing formula approved by Parliament and requires the Treasury to publish monthly transfer reports, tightening transparency around disbursements.
Data and official reports show the last tranche of the 2024/25 transfers landed in the final week of June. On June 28, the National Treasury released about Ksh30.99 billion, a last-minute disbursement that clears all pending exchequer disbursements for the 2024–25 financial year, bringing total county receipts to roughly Ksh418 billion, including carryovers.
The late-June push followed commitments at the 27th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC), chaired by Deputy President Kithure Kindiki, who had assured counties that dues would be settled by the end of the fiscal year.
“We don’t have any pending allocations apart from June’s, which will be released on time,” he said ahead of the close of the year.
With the new law in place, counties will share Ksh415 billion this year under the fourth-generation formula. Nairobi receives the largest slice, with allocations published alongside requirements for clearer reporting by both the National Treasury and county treasuries.
The Council of Governors has repeatedly flagged arrears risks when disbursements slip. In previous cycles, counties reported months-long lags, reinforcing calls for predictable, mid-month releases to protect payrolls and essential services.
