For many years Kenya embraced the deconcentration form of decentralisation which did not give full powers to local governments. Decision making was largely done at the centre with the Local Authorities (LAs) not having a free hand to formulate policies and laws relevant for managing their jurisdictions. The Intergovernmental Relations Act 2012 is Kenya�s mechanisms for ensuring smooth operation between the two levels of government, National and County created by the Constitution of Kenya. This paper reviews the IGR Act of Kenya, 2012 by first providing a conceptual understanding of intergovernmental relations followed by presentation and discussion of the provisions of the IGR Act, 2012, including opportunities and gaps. This publication contains also a basic review of the current Public Finance management Act.