Ruto signs 4 key bills into law, unlocks Ksh70.6B for counties
By Faith Lagat, November 21, 2025President William Ruto, on Friday, November 21, 2025, assented to four significant bills at State House, Nairobi, marking a major step in fiscal and governance reforms for the 2025/2026 financial year.
In a statement posted on his official X account, the President said: “Honoured to have assented to the County Governments Additional Allocations Bill, 2025; the Capital Markets (Amendment) Bill, 2025; the Provisional Collection of Taxes and Duties (Repeal) Bill, 2025; and the Government-Owned Enterprises Bill, 2025, at State House, Nairobi.”
County allocations boosted
The County Governments Additional Allocations Act provides an extra Ksh 70.6 billion to devolved units in the upcoming financial year. Of this amount, Ksh 9.98 billion from the National Government’s share of revenue will be allocated towards settling salary arrears for doctors and Community Health Promoters, as well as completing County Aggregation and Industrial Parks.
“The County Governments Additional Allocations Act provides an extra Ksh 70.6 billion to devolved units in the 2025/2026 financial year. Of this amount, Ksh 9.98 billion from the National Government’s share of revenue will be directed towards the settlement of salary arrears for doctors and Community Health Promoters, as well as the completion of County Aggregation and Industrial Parks.”
Counties will also receive Ksh 57.7 billion from development partners to support a wide range of development projects. The additional resources are expected to ease pressure on county administrations, particularly in clearing obligations owed to medical staff and reviving stalled industrial park initiatives.
Capital markets reforms
The Capital Markets (Amendment) Act modernises the regulatory framework for licensing capital markets intermediaries, with the goal of revitalising the sector, improving efficiency, and enhancing the ease of doing business.
The legislation eliminates shareholding limits to attract greater investment in regulated institutions and align Kenya’s financial markets with global standards.
“The Capital Markets (Amendment) Act modernises the regulatory framework for licensing capital markets intermediaries, to revitalise the sector, improve efficiency, and enhancing the ease of doing business. The law also removes shareholding limits to attract greater investment in regulated institutions.”
Tax law harmonisation and governance overhaul
The Provisional Collection of Taxes and Duties (Repeal) Act removes from Kenya’s statutes the 1929 law that previously allowed Parliament to introduce taxes before full legislation was enacted. The provision had been declared unconstitutional in 2018, with the courts ruling that all taxes must be imposed through properly enacted laws.
The Government-Owned Enterprises Act introduces updated governance practices for the management of State corporations. It provides for the appointment of independent board members through a transparent and competitive process, alongside other measures aimed at strengthening accountability within public enterprises.
President Ruto said: “With my assent, these four Bills, now form part of the laws of Kenya, reinforce our commitment to sound governance, transparency, and effective service delivery.”
The new laws take immediate effect.