Governors are threatening to boycott future
negotiations on the Division of Revenue Bill, claiming the process has been
reduced to a mere formality with predetermined outcomes.
The Division of Revenue Bill (DoRB), also known as the
Division of Revenue Act (DoRA), is a key piece of legislation that, upon
enactment, provides for the equitable division of revenue raised nationally
between the national and county governments in every financial year.
Frustrated county chiefs allege that their
participation in the Division of Revenue Bill negotiations is only to
"tick the box," arguing that the discussions have become static and
largely academic, with little regard for the realities of devolution.
Led by Wajir Governor FCPA Ahmed Abdullahi, who
doubles as the Chairperson of the Council of Governors (COG), the governors lament that despite the unbundling, costing, and transfer of at least 200 functions to
county governments, estimated to be worth Sh150 billion, these responsibilities
are not adequately factored into the revenue-sharing formula.
“It will be pointless to attend such negotiations if
the allocation for the 2025/2026 financial year is anything to go by. As the
Council of Governors (CoG), we had proposed Sh536 billion as the equitable
revenue share for counties. However, according to the budget estimates
presented by National Treasury Cabinet Secretary John Mbadi, counties have been
allocated only KSh405 billion,” said Governor Abdullahi.
“It loses all meaning if the national government
unilaterally decides county allocations. Our input must be meaningful, not
ceremonial,” he added.
This is even as they have dismissed the ongoing
mediation process between the National Assembly and the Senate over the
Division of Revenue Bill, 2025, as mere tokenism, accusing the national
government of sidelining their input and treating the process as a box-ticking
exercise with predetermined outcomes.
According to the proposed the Division of Revenue Bill
2025, county governments are set to receive Sh405.1 billion as their equitable
share of nationally raised revenue for the 2025/26 financial year.
This represents a modest increase of Sh17.6 billion
from the Sh387.4 billion allocated in the 2024/25 financial year.
In the previous cycle, the Division of Revenue (Amendment)
Act, 2024 allocated Sh387.4 billion to counties following a mediation process
between the National Assembly and the Senate.
Over the past five years, the equitable share has
steadily risen—from Sh316.5 billion in 2020/21 to Sh370 billion in both 2021/22
and 2022/23.
However, governors argue that the increases fall far
short of what is needed to fully support devolved functions, many of which have
already been unbundled, costed, and transferred to counties—estimated to be
worth at least Sh150 billion.
The equitable share is a critical lifeline for county
governments, distributed using a formula that factors in population size,
health services, agriculture, road infrastructure, and poverty levels.
During this year’s deliberations, the Council of
Governors (CoG) had proposed an allocation of Sh465 billion. The Commission on
Revenue Allocation (CRA) recommended Sh417 billion, while the National Treasury
proposed Sh405 billion.
Abdullahi, speaking on behalf of his colleagues,
voiced frustration with the outcome of the Intergovernmental Budget and
Economic Council (IBEC) a forum bringing together national and county
governments, the CRA, and the National Treasury.
“At the IBEC meeting, we deliberated and revised the
figure capped at Sh536 billion, but the National Treasury’s earlier proposal of
Sh405 billion has been retained. It’s disappointing,” Abdullahi said.
The governors also criticized the Senate for what they
termed as “lukewarm support” for counties, accusing the House of failing in its
constitutional mandate to protect and defend the interests of county
governments.
“The Senate has not stamped its authority in the DORA
negotiations. We appear before the Finance and Budget Committee, but when
things go wrong, they shift the blame to governors—yet we don’t have a seat at
the table during mediation,” Abdullahi lamented.
He urged senators to take a firm stand during the
mediation process and insist on the Sh536 billion proposal advanced by the CoG
not the Senate proposal of Sh465 billion
“Senators must reject any increment that falls below
what was costed during the unbundling of devolved functions. Settling for less
than Sh150 billion worth of transferred responsibilities is unacceptable,” he
added.
