President William Ruto on Wednesday assented to the Division of Revenue (Amendment) Bill, 2024, unlocking Sh387 billion equitable share to counties for the 2024-2025 fiscal year.

The earlier Sh400 billion allocated as equitable share to 47 counties was revised downwards by MPs to Sh380 billion following the withdrawal of the controversial Finance Bill 2024.

The National Assembly and the Senate later struck a deal that saw the figure revised upwards by Sh7 billion, representing 24.67 per cent of the last audited revenue accounts.

In the 2023-2024 financial year, counties got Sh385 billion, with the national government grappling with revenue shortfall causing friction with governors on the share of revenue.

The Constitution of Kenya stipulates that the national government must remit to the 47 devolved units a minimum of 15 per cent of its last audited accounts of collected revenues.

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The Division of Revenue (Amendment) Bill, 2024 has allocated Sh2.2 trillion to the National Government.

At the same time, President Ruto assented to the National Rating Bill 2022, as well as the Water (Amendment) Bill, 2024 during the ceremony conducted at State House, Nairobi.

The National Rating Act, 2024, creates a standard structure for valuation and rating, and lays clear rules on how counties should assess property value and charge rates, among others.

The Water (Amendment) Act, 2024, provides for public-private partnerships in financing the development of water works by National Government agencies.