President William Ruto has signed the Public Finance Management (Amendment) Bill, 2025 into law, introducing significant changes to how public funds are managed, reported, and overseen at both national and county levels.

• The new law establishes a framework for transferring functions, assets, and liabilities between the national and county governments.
• Key changes include the introduction of accrual accounting and a requirement for county governments to pass their Finance Bills before the start of a new financial year.
• Financial reporting timelines have been tightened, with accounting officers now needing to submit statements to the Auditor-General within two months, down from three.

President William Ruto has signed into law significant amendments to the Public Finance Management Act, introducing penalties for public entities that disregard audit findings.

• The new law targets officials who fail to implement recommendations from the Auditor-General and Controller of Budget, including those adopted by Parliament or county assemblies.
• This legislation is part of four Bills assented to by the President on September 8, 2026, aimed at strengthening oversight of public funds.
• Other enacted laws include those concerning population planning, air passenger charges, and trust administration, with the aim of creating a clearer legal framework and promoting better financial management across various sectors.

President William Ruto has assented to four new laws aimed at strengthening public finance management, enhancing aviation revenue administration, formalizing population planning, and modernizing trust law in Kenya.

• The legislation focuses on improving accountability in public resource management and streamlining aviation charges.
• Key legislation includes the Public Finance Management Amendment Bill, 2025, the Air Passenger Service Charge Amendment Bill, the Kenya National Council for Population and Development Bill, and the Trust Administration Bill.
• These laws were signed at State House, Nairobi, on Tuesday, September 8, 2026.