Ruto Signs Bill Sending KSh 71.09B to Counties as Spending Gaps PersistRuto Signs Bill Sending KSh 71.09B to Counties as Spending Gaps Persist

The County Governments Additional Allocations Bill, 2026 was assented to at Eldoret State Lodge on Monday 19 October, giving a legal basis for moving conditional funds from the national government and development partners to county governments. For county health, farming and housing programmes, the question now is how quickly the cash arrives.

Where the money comes from

Of the total, KSh 16.46B ($126.71M) comes from the national government's allocation, while KSh 53.82B ($414.32M) comes from loans and grants from development partners. That means about three quarters of the extra money depends on external financing.

The two components add up to KSh 70.28B ($541.03M), which is about KSh 0.81B ($6.24M) below the KSh 71.09B headline figure. The reported details do not say what accounts for the difference, and the text of the Act should settle it.

The funds are meant to cover unconditional allocations from statutory entitlements, conditional allocations from the national share of revenue, and loan and grant proceeds. Priority areas named are health, agriculture, affordable housing, urban infrastructure and climate change.

What else Ruto signed

The President also signed the County Assembly Services (Amendment) Bill, which sets procedures for removing county assembly service board members and suspending clerks. A removal petition goes to the Clerk, and the Speaker forwards it to the assembly within seven days. An 11-member select committee then has 10 days to review it.

Clerks facing suspension must be given written reasons, seven days to respond and a hearing. Salaries, benefits and reinstatement rights of seconded officers are protected. Both bills had earlier passed the Senate, according to the reported details.

Why the timing of releases matters

Passing a law does not put money in county accounts. Releases are approved by the Controller of Budget, and counties have often waited for funds. As Mwenendo earlier reported, KSh 100 billion sat idle in the year to June 2026 while development projects stalled, so cash that arrives late can add to a backlog rather than clear one.

Donor-funded money also usually comes with conditions on how and when it is spent. Counties that cannot meet those conditions risk leaving part of the KSh 53.82B ($414.32M) unused.

The bill arrives as Parliament reviews how national agencies and counties share duties. Mwenendo also covered a bill that would abolish six regional authorities and move their liabilities to the Treasury, part of a wider push on public spending.

Contractors, suppliers and residents waiting for clinics, roads and water projects will watch the Controller of Budget's release schedule, and the Senate's county oversight work, for signs that the extra money reaches projects before the financial year is far gone. The Senate passed the bill, and its committees track county spending.