Ruto assents Division of Revenue Bill 2025 into law
By Nancy Marende, July 8, 2025President William Ruto has assented to the proposed Division of Revenue Bill 2025 into law at State House, Nairobi.
State House Chief of Staff Josephat Nanok invited President Ruto to assent to the bill on Tuesday, July 8, 2025, after the National Assembly and the Senate passed it.
“Your Excellency, with the National Assembly having dutifully discharged its legislative mandate. It is now your prerogative as the head of state and government to exercise the powers conferred upon you under Article 15 of the constitution and assent to the bill,” he said.
The Division determines the equitable sharing of nationally raised revenue between the national and county governments each financial year.
According to the Division of Revenue Act, counties will receive Ksh405.1 billion as their equitable share of revenue for the 2025/26 financial year, an increase of Ksh17.6 billion from the Ksh387.4 billion allocated in the current 2024/25 cycle.
The county share has steadily grown in recent years from Ksh316.5 billion in 2020/21 to Ksh370 billion in 2021/22 and 2022/23.
During this year’s revenue-sharing consultations, the Council of Governors recommended an allocation of Ksh465 billion. The Commission on Revenue Allocation (CRA) proposed Ksh417 billion, while the National Treasury maintained its Ksh405 billion position.
Council of Governors
The assent follows the Council of Governors’ (COG) threat to withdraw from future negotiations on the Division of Revenue Bill (DORA), citing frustration over what they describe as a predetermined process that undermines devolution.
The governor, on June 16, 2025, stated that consultations around the bill have been reduced to a box-ticking exercise, with the views of county leaders disregarded despite the extensive transfer of functions from the national government to counties.
“It will be pointless to attend such negotiations if the allocation for the 2025/2026 financial year is anything to go by,” said Council of Governors Chairperson and Wajir Governor FCPA Ahmed Abdullahi.
“As the Council of Governors (CoG), we had proposed Sh536 billion as the equitable share for counties. However, the National Treasury has proposed only Sh405 billion in its budget estimates,” he added.
Abdullahi noted that the underfunding persists despite the transfer of over 200 functions to county governments, functions costing more than Ksh150 billion.
“It loses all meaning if the national government unilaterally decides county allocations. Our input must be meaningful, not ceremonial,” he said.
The governors have also dismissed the ongoing mediation between the National Assembly and the Senate on the Division of Revenue Bill, 2025, as a hollow process that merely legitimises decisions.