A new bill seeks to remove the requirement for counties to sign formal agreements with the National Treasury before accessing additional allocations (conditional grants).
Sponsored by National Assembly Majority Leader Kimani Ichung’wah, the Public Finance Management (Amendment) Bill, 2025 aims to repeal sections of the current law that require intergovernmental agreements, terming them bureaucratic and inefficient.
Currently, counties must negotiate with Treasury, involve assemblies, ensure public participation, and publish agreements before using the funds—steps that have caused delays and stalled key projects like county headquarters and industrial parks.
The proposed change would give counties direct access to these funds, eliminating Treasury mediation. The government argues this will speed up project implementation, while some lawmakers and oversight bodies warn it could weaken accountability.
Governors support the change, saying they are owed Sh75 billion in pending disbursements and want more control over devolved functions and related funds.
