Ruto signs law targeting officials who ignore audit findings

President William Ruto sign into law four Bills at State House on September 8, 2026. [PCS]

President William Ruto has signed into law changes that could penalise public entities for failing to implement recommendations by the Auditor-General and Controller of Budget.

The Public Finance Management Amendment Bill 2025 is one of four Bills Ruto assented to, alongside legislation on population planning, air passenger charges and trust administration.

The amendments shorten the period within which public entities must submit financial statements and introduce penalties for failing to implement recommendations arising from reports by the Auditor-General and Controller of Budget, including findings adopted by Parliament or county assemblies.

The changes seek to strengthen oversight of public funds and ensure recommendations by constitutional oversight institutions are acted on.

Ruto also signed the National Council for Population and Development Bill, which establishes the National Council for Population and Development as a statutory body responsible for population and development matters.

The council will coordinate population policies and programmes, support evidence-based population planning and advise the Government on population growth, demographic trends and their impact on economic and social development.

The President noted that the legislation comes as Kenya shapes its development agenda beyond Vision 2030.

The Air Passenger Service Charge Amendment Bill also became law, changing the framework for collecting and administering charges paid by air passengers.

The amendments provide a legal basis for additional institutions to benefit from the proceeds, including the Kenya Airports Authority, Kenya Civil Aviation Authority, Kenya Meteorological Department and Tourism Fund.

The changes are intended to support aviation infrastructure, regulation, weather services and tourism while providing a clearer framework for managing passenger service charge revenue.

The fourth legislation, the Trust Administration Bill, creates a single legal framework for administering trusts.

The law repeals the Trustees (Perpetual Succession) Act and the Trustee Act, replacing them with one principal statute.

The Government expects the new framework to remove duplication and inconsistencies in trust law while making it easier for trustees and beneficiaries to understand and administer trusts.

The legislation will also provide a framework for trusts used in estate planning, asset management and administration of property on behalf of beneficiaries.

The Acting Director General of the National Council for Population and Development (NCPD), Lucy Kimondo, described the assent as a major milestone for Kenya’s population and development agenda.

“The enactment of this law crowns years of effort towards re-establishing the Council on a firm legal foundation. Operating under an Act of Parliament strengthens our mandate and enhances our capacity to serve all population groups while addressing their unique needs and development aspirations,” Kimondo said.