President William Ruto on Friday assented to four critical Bills at State House, Nairobi, solidifying a legislative push for enhanced devolution funding, capital market liberalisation, and improved governance of state-owned entities.
The four pieces of legislation, the County Governments Additional Allocations Bill, the Capital Markets (Amendment) Bill, the Provisional Collection of Taxes and Duties (Repeal) Bill, and the Government-Owned Enterprises Bill, all of 2025, now officially form part of the Laws, marking a significant step in the administration’s reform agenda.
The County Governments Additional Allocations Act, 2025, provides a substantial financial boost to Kenya's devolved units, allocating an extra KSh70.6 billion for the 2025/2026 financial year.
This total comprises KSh9.98 billion from the National Government's share of revenue, which is strategically ring-fenced for key initiatives, including the settlement of salary arrears for doctors, support for the Community Health Promoters (CHPs) programme, and the completion of vital County Aggregation and Industrial Parks (CAIPs).
Furthermore, the counties are set to receive an additional KSh57.7 billion in conditional allocations funded by development partners, aimed at accelerating a range of development projects across the country.
Alongside the devolution funding, the President sanctioned two major economic and regulatory reforms.
The Capital Markets (Amendment) Act, 2025, modernises the regulatory framework for licensing capital markets intermediaries, designed to revitalise the sector, boost efficiency, and enhance the ease of doing business.
Crucially, this new law removes previous shareholding limits in regulated institutions, a liberalisation move intended to attract greater domestic and foreign investment. Complementing this, the Provisional Collection of Taxes and Duties (Repeal) Act, 2025, expunges a 1929 statute that had controversially allowed Parliament to introduce taxes before the full enactment of legislation.
Its repeal formalises a 2018 court ruling, firmly establishing the constitutional requirement that all taxes must be imposed only through properly enacted laws, thereby strengthening taxpayer protection and parliamentary oversight.
Finally, the Government-Owned Enterprises Act, 2025, introduces a landmark reform dedicated to improving governance and accountability in the management of State corporations.
The law establishes a best-practice framework for the control, governance, and performance of these entities.
Among its progressive measures, the Act mandates the appointment of independent board members through a transparent and competitive process, signalling a shift away from politically driven appointments and towards professional management to ensure that GOEs operate efficiently and align with national development priorities.
In his social media post, President Ruto emphasized that the four new laws "reinforce our commitment to sound governance, transparency, and effective service delivery."
Tags: William Samoei Ruto County Governments Additional Allocations Bill Government-Owned Enterprises Bill Provisional Collection of Taxes and Duties (Repeal) Bill Editor's Pick
Share this article
Selestine Nyongesa
Experienced and versatile writer, dedicated to using my exceptional writing and editing skills to inform and advocate. My work focuses on educating and entertaining readers on a range of topics, with a particular expertise in matters of disability.