President William Ruto on Friday signed four new laws that introduce fresh rules on how State corporations are run, raise funding for counties, and remove an old tax law that has been in place since 1929.
The signing took place at State House Nairobi, marking a major shift in how public funds and national agencies will be managed going forward.
The new laws are the County Governments Additional Allocations Bill, 2025, the Capital Markets (Amendment) Bill, 2025, the Provisional Collection of Taxes and Duties (Repeal) Bill, 2025, and the Government-Owned Enterprises Bill, 2025.
Together, they set the stage for what the government says will be better service delivery and higher accountability across key institutions.
Under the County Governments Additional Allocations Act, county governments will receive an extra Sh70.6 billion in the 2025/2026 financial year. The additional money is expected to ease pressure in several sectors that have been struggling with unpaid bills and incomplete projects.
From this amount, Sh9.98 billion from the national government’s revenue share will go towards clearing salary arrears for doctors and Community Health Promoters, and finishing the construction of County Aggregation and Industrial Parks.
President William Ruto after signing 4 bills into law at State House, Nairobi on November 21, 2025.Counties will also receive Sh57.7 billion from development partners to support different projects and programmes already underway in the regions.
The Capital Markets (Amendment) Act introduces updated rules for licensing capital markets players, a move expected to make the sector more attractive and easier to operate in.
The law also removes limits on shareholding for regulated institutions, a change that aims to draw more investors and boost the growth of the market.
Another law signed by the President is the Provisional Collection of Taxes and Duties (Repeal) Act, which deletes a law passed in 1929 that allowed Parliament to introduce taxes before full legislation was completed.
In 2018, the courts ruled that the old provision was unconstitutional and directed that all taxes must be created through properly enacted laws. The repeal now fully aligns the legal framework with that ruling.
The Government-Owned Enterprises Act introduces new standards for the management of State corporations. It requires independent members of boards to be appointed through an open and competitive process.
The government says this will help strengthen leadership, improve oversight, and ensure public resources are handled responsibly.
The new laws, according to the government, are meant to reinforce the country’s push for better governance, openness, and effective public services.
