The National Assembly has passed the County Government Additional Allocation (No. 2) Bill (Senate Bill No. 8 of 2025) with amendments. This is after considering a series of amendments proposed during the Committee of the whole House stage.

The Bill which was passed by the Senate on the 23rd of July, 2025 before being forwarded to the National Assembly for consideration, seeks to authorize the transfer of both conditional and unconditional additional allocations to county governments for the financial year 2025/26. These allocations come from the National Government's share of revenue as well as from development partners.

The Bill proposes to allocate a total of KSh. 93.53 billion as additional funds to county governments. This includes KSh. 2.95 billion from Court Fines and 20 percent of Mineral Royalties as contained in the first schedule, KSh. 10.04 billion from the National Government's Share of Revenue contained in the second schedule, KSh. 23.63 billion from the Road Maintenance Fuel Levy Fund contained in the third schedule, and KSh. 56.9 billion from loans and grants from development partners as contained in the fourth schedule

The Chairperson of the Budget and Appropriation Committee, Hon. Samuel Atandi, led the House through the amendments, noting that they were necessary to align the Bill with current fiscal realities and to ensure that county governments receive resources in a more predictable and accountable manner.

Among the amendments that the House made was adjustments on allocations for the construction of county headquarters. This was done to reflect the actual transfers, bringing the figure to KSh. 449 million after deducting KSh. 5 million meant for operational expenses.

On County Aggregation of Industrial Parks (CAIPs), the House agreed that priority will go to counties with pending balances from the National Government. The remaining funds will be shared among counties that have shown strong progress in implementing their projects.

The House also approved the deletion of the third schedule, which had listed allocations to counties from the Road Maintenance Levy Fund.

For the Kenya Informal Settlement Improvement Project, the House approved the reduction on the allocation under World Bank (IDA) funding from KSh. 800 million to KSh. 167.5 million. At the same time, funding from the French Development Agency (AFD) was increased from KSh. 1 billion to KSh. 2.5 billion.

Lastly, the Kenya Devolution Support Programme II was revised with Level One grants increasing to KSh. 3.43 billion, while Level Two grants were reduced to KSh. 11.38 billion.