President William Ruto has assented to four major pieces of legislation aimed at improving county financing, strengthening Kenya’s capital markets, updating tax governance, and reforming State corporations.
The signing ceremony took place at State House, Nairobi, where the President described the new laws as an important step in promoting accountability, transparency, and efficient service delivery across all levels of government.
Under the County Governments Additional Allocations Act, counties will receive an extra Sh70.6 billion in the 2025/2026 financial year.
The National Government will channel Sh9.98 billion to settle salary arrears owed to doctors and Community Health Promoters, and to complete ongoing County Aggregation and Industrial Parks.
Development partners will contribute an additional Sh57.7 billion earmarked for various county development projects.
In a move expected to revitalise the financial sector, the President also signed the Capital Markets (Amendment) Act, 2025.
The law modernises the licensing framework for capital markets intermediaries and eliminates previous shareholding limits, a shift aimed at encouraging more investment and making it easier to do business in the sector.
Another significant reform is the Provisional Collection of Taxes and Duties (Repeal) Act, 2025, which deletes a 1929 law that had allowed Parliament to impose taxes before a full law was enacted.
The provision had been declared unconstitutional in 2018, reinforcing the principle that all taxes must be anchored in properly enacted legislation.
The President further assented to the Government-Owned Enterprises Act, 2025, a landmark law that introduces global best practices in the management of State corporations.
Among the key reforms is the requirement that board members of government-owned enterprises be appointed through a transparent and competitive process, strengthening governance and accountability.
“With my assent, these four Bills now form part of the laws of Kenya, reinforcing our commitment to sound governance, transparency, and effective service delivery,” President Ruto said after signing the laws.
