A growing standoff between the Senate and the National Assembly over the Division of Revenue Bill, 2025 is threatening to trigger a lengthy mediation process after governors flatly rejected the Sh405 billion county allocation approved by the National Assembly.
The conflict intensified after the Council of Governors (CoG) told the Senate Finance Committee—chaired by Mandera Senator Ali Roba—that counties cannot operate effectively on the amount proposed by the National Treasury.
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Governors Demand at Least Sh536 Billion
Governors are demanding a minimum of Sh536 billion for the 2025/26 financial year to accommodate rising costs and expanded county responsibilities. Although the Senate had offered a compromise of Sh465 billion, county leaders insist the figure still falls short.
According to the CoG, the Sh405 billion allocation fails to account for:
- Inflation and rising cost of living
- Expanded devolved functions
- Increased demand for local services
They further argue that several critical county obligations were left out of the Treasury’s proposal, including:
Doctors’ job evaluation changes – Sh3.45 billion
Housing Levy deductions – Sh4 billion
NSSF payments – Sh6 billion
County industrial parks support – Sh11 billion
Community health workers – Sh3.3 billion
Unpaid medical equipment costs – Sh39 billion
Salary adjustments – Sh6.3 billion
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Governors Accuse National Government of Undermining Devolution
CoG Finance Chair and Kakamega Governor Fernandes Barasa termed the Sh405 billion offer “unacceptable,” saying the county budget must grow in line with economic expansion. He noted that while the national government’s budget increases by over Sh700 billion yearly, counties remain stuck with the same share.
Makueni Governor Mutula Kilonzo Jr accused the national government of using county funds for political leverage instead of development priorities. He warned that such interference threatens devolution and encourages unnecessary bureaucracy.
Senators, MPs Issue Warnings
Senator Ali Roba urged governors to also engage the National Assembly directly, noting that safeguarding devolution should not rest solely on the Senate.
Nominated MP Tabitha Mutinda cautioned that ignoring county needs would worsen inequalities and weaken public confidence in devolution. She also demanded an explanation from the Treasury regarding the Sh10.4 billion shortfall in the Equalisation Fund, which is meant to assist marginalised regions.
CRA Rejects the Allocation
The Commission on Revenue Allocation (CRA) has also dismissed the Sh405 billion proposal. CRA Chairperson Mary Chebukati had recommended Sh417 billion as a fair allocation, but her advice was ignored by both the Treasury and the National Assembly.
Chebukati criticised the government’s claim that certain funds serve “national interest,” insisting it is not a valid reason to deny counties their fair share of revenue.
