President Uhuru Kenyatta has today signed into law the Division of Revenue Bill 2019.
The head of state signed the bill into law at State House.
The new development has paved the way for the Treasury to release the agreed funds to the 47 counties after a financial crisis.
Under the law, the county governments will share Sh378.1 billion for the 2019/20 financial year.
The law states that the Shs 316.5 billion will be wired to the county government accounts by the national government while Sh. 61.6 billion are conditional allocations to the regions.
Over sh. 50 billion have already been disbursed to the counties by the National Treasury. The amount accounts for the months of July and August.
Before the agreement between the senators and Members of Parliament, counties decried lack of funds to finances their operations.
At some point, the Council of Governors, led by its Chairman Wycliffe Oparanya had threated to close down counties if their plight is not taken into consideration.
The ceremony was witnessed by different government officials including Acting Treasury CS Ukur Yattani, Treasury PS Dr Julius Muia, Devolution CS Eugene Wamalwa, Attorney General Paul Kihara Kariuki and Speaker of the National Assembly Justin Muturi.