National Assembly passes County Governments Additional Allocations Bill unlocking funds for Counties

𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐬𝐬𝐞𝐦𝐛𝐥𝐲 𝐂𝐡𝐚𝐦𝐛𝐞𝐫 
𝐅𝐫𝐢𝐝𝐚𝐲, 𝐌𝐚𝐫𝐜𝐡 𝟏𝟒, 𝟐𝟎𝟐𝟓 

The National Assembly has passed the County Governments Additional Allocations Bill (National Assembly Bill No. 2 of 2025), paving the way for the transfer of billions in conditional and unconditional grants to county governments for the 2024/2025 financial year. 

The Bill provides for the transfer of additional allocations from the national government and development partners to county governments, supplementing the funds already allocated through the Division of Revenue Act. The funds include conditional allocations for specific county projects, unconditional allocations from sources such as court fines, and grants from international partners. 

The House has also allocated funds towards the Community Health Promoters (CHPs) initiative, ensuring stipends for healthcare workers critical to implementing the Universal Health Coverage (UHC) program. Additionally, Ksh1.759 billion has been allocated for salary arrears owed to county health workers. 

“The issue of the health promoters. They are supposed to be given a very small monthly stipend of Ksh5000, which is not even enough but they are not even getting that money. There is no money in our counties yet we are giving them additional work. They are supposed to be registering people with the SHA as well as sensitizing them on the same. They do that job diligently but at the end of the day, they do not have anything to take home. If we are supposed to make SHA functional, this money should be released to the counties so that they can run smoothly,” Hon. Phyllis Bartoo (Moiben) 

Grants from the Kenya Urban Support Programme (KUSP) will finance infrastructure projects such as road maintenance and informal settlement upgrades and International Development Association (IDA) funds to support water and sanitation projects in counties. 

Additionally, revenue collected from court fines on county violations will be shared with county governments as unconditional allocations.

Supporting the Bill, Hon. Jematiah Sergon (Baringo County, UDA) underscored the financial struggles of county governments. "This Bill will enable them to fulfill their obligations, pay workers, and support key development projects," she said. 

Hon. (Dr)Wilberforce Oundo (Funyula) criticized the delay, attributing it to wrangles between the Senate and CoG. "We are only three months to the end of the financial year, and some of these allocations might not be absorbed on time. This unnecessary delay has cost counties billions in lost opportunities," he remarked. 

The Bill also outlines several key allocations including County Aggregation and Industrial Parks (CAIPs), each of the 19 selected counties will receive Ksh105.3 million for the development of industrial parks aimed at boosting local manufacturing and agribusiness. 

Hon. Owen Baya (Kilifi North) highlighted the importance of the County Aggregation and Industrial Parks (CAIPs) program, which aims to establish manufacturing hubs in counties. "Every county must have an industrial park to support economic growth. These additional funds will ensure CAIPs are completed, providing jobs and boosting local industries," he said. 

The Leader of the Majority Party, Hon. Kimani Ichung'wah added that, “The conditional allocations to counties from our national Government revenue such as the County Aggregation and Industrial Parks Programme (CAIPs) money that the national Government gives to counties and other conditional allocations. Members can remember 11 counties that have in the last few years benefited from conditional grants to help them build and complete their county headquarters. It is the first schedule that details all the additional conditional allocations,” Hon. Kimani Ichung’wah 

While welcoming the additional funds, lawmakers cautioned county governments against mismanagement. Hon. Ferdinand Wanyonyi (Kwanza) warned governors to use the allocations effectively. 

"We hope governors will be serious and ensure that funds are not lost through corruption. These resources must directly benefit the people," he emphasized. 

With the Bill now passed by the National Assembly, the Senate is expected to consider the County Governments Additional Allocation Bill, 2025. 

If enacted, the Bill will inject billions into counties, improving healthcare, infrastructure, and industrialization efforts across Kenya.