HOMA BAY, Kenya — President William Ruto has announced a historic milestone in Kenya’s 12-year devolution journey: all 14 devolved functions are now fully transferred to counties, ending long-standing disputes over who does what — and who pays for it.
Speaking at the 2025 Biennial Devolution Conference in Homa Bay on Wednesday, the President said the functions have been “conclusively delineated, unbundled, and formally gazetted,” marking the first time counties have both the mandate and resources to take full control of critical services.
A 12-Year Wait Ends
Since the launch of devolution in 2013, counties and the national government have clashed over grey areas in the Fourth Schedule of the Constitution. Disagreements over health services, agriculture, water management, and early childhood education often stalled projects and fuelled intergovernmental disputes.
Ruto said this is now history.
“This milestone has eliminated decades-old ambiguities that hampered service delivery,” he declared.
The President also announced a breakthrough in the transfer of public assets. Through Gazette Notice No. 11164 of August 12, 2025, land and buildings linked to devolved services will now be handed over to county governments — a process that has been stuck in limbo for more than a decade.
To back the expanded functions, the national government has allocated KSh 415 billion to counties in the 2025/26 financial year — the highest in Kenya’s history and nearly KSh 30 billion more than last year.
The funds will be shared according to the Fourth Determination of the Basis for Division of Revenue, applied for the first time this year. Ruto also signed two key laws during the conference — the County Public Finance Laws (Amendment) Bill, 2023 and the County Allocation of Revenue Bill, 2025 — aimed at cementing horizontal revenue sharing and clarifying the responsibilities of each level of government.
Call for Efficiency, Not Just Bigger Budgets
While celebrating the progress, Ruto challenged governors and county assemblies to ensure the new powers and funds translate into real change on the ground.
“Our greatest challenge is not the inadequacy of resources, but how we utilise what we have,” he told delegates. “Are we directing them to the right purposes? How much is lost to waste and corruption?”
He urged counties to fully adopt digital platforms such as eCitizen, which he credited with boosting revenues by over 1,500% nationally and reducing opportunities for graft. Counties like Mombasa, Kiambu, and Kajiado, he noted, have seen revenue jumps of between 48% and 61% after integrating with the system.
The announcement in Homa Bay comes as part of Ruto’s broader Bottom-Up Economic Transformation Agenda, which aims to develop one high-impact value chain in every county — from fish processing in Homa Bay to leather in Kajiado and textiles in Kitui.
The President closed his speech with a rallying call:
“For the people, for prosperity is not just a slogan — it’s a call to action. Let history record that this generation made devolution work, not just in law, but in the daily lives of our people.”
