President Ruto Signs Bill Unlocking Additional Ksh71 Billion for Counties

President William Ruto on Monday, October 19, assented to the County Governments Additional Allocation Bill 2026. 

The Head of State signed the new legislation during a ceremony at the Eldoret State Lodge in Uasin Gishu County. 

The bill, which was sponsored by Mandera Senator Ali Roba, governs the transfer of conditional and unconditional resources from the national government’s share of revenue, development partner loans and grants to county revenue funds. 

“The additional allocations provided for under this bill fall in two broad categories. Additional resources from the national government share and additional allocations to counties from loans and grants from donors and development partners,” Senate Clerk Jeremiah Nyegenye said. 

The bill makes provision for enhanced fiscal transfer of a total of Ksh71,091,926,967 to county governments for the financial year 2026/2027. 

Nyegenye noted that the conditional allocations from the national government would supplement the construction of county headquarters.

The additional funds would also help facilitate the transition of county health staff to permanent and pensionable terms.

“The conditional allocations from the national government’s share will go a long way to supplement the construction of county headquarters. The funds will also assist in meeting the obligations for universal health coverage staff who are transitioning to permanent and pensionable terms,” he added. 

At the same time, President Ruto assented to the County Assembly services amendment bill. 

According to Nyegenye, the new law’s primary objective is to address the governance challenges that have beset the civil service of our county assemblies. 

“The bill sets out the procedure that will address the removal of members of the county public service board, requiring them to go through a committee of inquiry and subsequently a vote by the County Assembly,” the Senate Clerk stated. 

This comes days after President Ruto signed the Tax Laws Amendment Bill 2026 into law. 

The bill, which was introduced in the National Assembly by Kikuyu MP Kimani Ichung’wah, amends section 5 of the Value Added Tax (VAT) Act and sets a reduced VAT rate for petroleum products at 8 percent from 16 percent. 

National Assembly Clerk Samuel Njoroge, while highlighting the bill, said the new law sustains 8% VAT on petroleum products for 90 days. 

He noted that the VAT can be extended for an additional 90 days if the crisis in the Middle East does not improve.  

“The bill sustains the 8 percent VAT application on petroleum products to ensure that the effect of the crisis that has been seen in the Middle East does not affect the Kenyan economy. The bill ensures that the 8 percent VAT is sustained for a period of 90 days, and if the situation in the Middle East does not improve, it is extended for another 90 days,” said Njoroge.