The National Assembly has passed the Public Finance Management (Amendment) Bill (National Assembly Bill No. 17 of 2025).

The Bill, sponsored by the Leader of the Majority Party, targets fundamental structural bottlenecks within Kenya’s public financial architecture. Comprising six clauses, the bill amends the parent Public Finance Management Act to reform how intergovernmental financial flows are structured and executed.

 By repealing sections 191A through 191E of the PFM Act, the legislation removes overlapping regulatory frameworks that previously led to institutional duplication when disbursing additional fiscal allocations to devolved units.

 To fastrack service delivery, a standardized, harmonized mechanism for intergovernmental funding agreements ensures grants and conditional allocations reach county governments without bureaucratic delays. 

 The Bill also streamlines the legal provisions ensures every shilling allocated under intergovernmental agreements can be efficiently tracked, protecting public resources from administrative leakage.
During parliamentary debate, lawmakers across the aisle praised the measure, noting that eliminating fiscal redundancies directly enhances the value taxpayers receive from every shilling disbursed to the counties.