Members of Parliament have made tremendous progress in addressing the issue of cash crunch in devolved units.

To actualise the full system operations of county government, the MPs passed the County Governments Additional Allocations Bill (National Assembly Bill No. 2 of 2025).

The bill passed on Friday, March 14, 2025, paved the way for the transfer of billions in conditional and unconditional grants to county governments for the 2024/2025 financial year.

In a statement shared by Parliament of Kenya, the National Assembly Bill No. 2 of 2025, provides for the transfer of additional allocations from the national government and development partners to county governments, supplementing the funds already allocated through the Division of Revenue Act.

They include conditional allocations for specific county projects, unconditional allocations from sources such as court fines, and grants from international partners.

What the Bill proposes

The passed bill seeks to empower counties and provide an avenue for them to get more funds to run various projects. It stipulates that revenue collected from court fines on county violations will be shared with county governments as unconditional allocations.

It also allows governors to get part of the grants from the Kenya Urban Support Programme (KUSP) to finance infrastructure projects such as road maintenance and informal settlement upgrades.

Further, it seeks to give governors access to International Development Association (IDA) funds to support water and sanitation projects in counties.

Warning to governors

While welcoming the additional funds, lawmakers cautioned county governments against mismanagement. Ferdinand Wanyonyi (Kwanza) warned governors to use the allocations effectively.

“We hope governors will be serious and ensure that funds are not lost through corruption. These resources must directly benefit the people,” he emphasized.

Same sentiments were echoed by Leader of Majority Kimani Ichung’wah, who asked governors to utilise the funds prudently. Nonetheless, he emphasised that the funds would help governors revive stalled projects.

“The conditional allocations to counties from our national government revenue such as the County Aggregation and Industrial Parks Programme (CAIPs), money that the national government gives to counties and other conditional allocations. Members can remember 11 counties that have in the last few years benefited from conditional grants to help them build and complete their county headquarters. It is the first schedule that details all the additional conditional allocations,” Ichung’wah stated.

With the Bill now passed by the National Assembly, the Senate is expected to consider the County Governments Additional Allocation Bill, 2025.

If enacted, the Bill will inject billions into counties, improving healthcare, infrastructure, and industrialization efforts across Kenya.