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President Ruto approves law unlocking billions in donor grants and state funds for counties

President William Ruto has approved new laws that will increase funding to Kenya’s 47 county governments by Ksh71.09 billion in the 2026/27 financial year, providing additional resources for key development projects and public services.

Ruto signed the County Governments Additional Allocations Bill, 2026, and the County Assembly Services (Amendment) Bill, 2023, at Eldoret State Lodge on Monday, October 19. The two bills, which had been passed by the Senate, are now laws.

The County Governments Additional Allocations Act provides a legal framework for transferring extra funds from the national government and development partners to county administrations.

The money will support projects in health, agriculture, affordable housing, urban infrastructure and climate change.

The legislation was presented to the Senate by Mandera Senator Ali Roba. It covers unconditional allocations arising from statutory entitlements, conditional funding from the national government’s share of revenue, and money obtained through loans and grants from development partners.

Of the Ksh71.09 billion approved for counties, Ksh16.46 billion will come from the national government’s allocation, while Ksh53.82 billion will be sourced from loans and grants provided by development partners.

The additional funding is expected to support county governments in implementing priority projects and delivering services to residents during the 2026/27 financial year.

The new law also provides the legal basis for distributing conditional allocations across all 47 counties.

County administrations rely on these funds to support development programmes and improve services in areas such as healthcare, agriculture and urban infrastructure.

The allocation will allow counties to access resources designated for specific projects under the conditions set by the national government and development partners.

Ruto also signed the County Assembly Services (Amendment) Bill, 2023, which introduces formal procedures for removing members of County Assembly Service Boards and establishes safeguards for the suspension of county assembly clerks.

Under the new law, a petition seeking the removal of a board member must be submitted to the clerk. The Speaker is then required to forward it to the county assembly within seven days.

An 11-member select committee will review the petition within 10 days. The process also allows the affected board member to be represented by a lawyer, providing a formal procedure for considering removal requests.

The law further sets out requirements for suspending county assembly clerks. Authorities must provide written reasons for the proposed suspension, give the affected clerk seven days to respond and allow a hearing before a decision is made.

Additionally, the legislation protects officers seconded to other institutions by safeguarding their salaries, benefits and allowances.

It also provides for their reinstatement rights, helping ensure that secondment does not automatically deprive them of their employment benefits.

The two laws address county funding and the administration of county assemblies, setting out rules for the distribution of additional resources and procedures governing the management of county assembly officials.