The Council of Governors (CoG) has expressed concern that essential county services may be at risk of disruption following the failure to secure the full Sh400 billion equitable share of revenue for counties, as outlined in the Division of Revenue Bill, 2024.
While the governors have reluctantly agreed to accept the reduced Sh387 billion allocation to end the ongoing deadlock with the Senate, they have voiced dissatisfaction with the decision, emphasizing that the revised figure falls short of the Sh400 billion they consider necessary to effectively deliver key services and implement devolution.
Governors Express Discontent Over Reduced Allocation
In a statement, Kakamega Governor and Chairperson of the CoG’s Finance, Economic, and Planning Committee, Fernandes Barasa, confirmed that although the CoG had agreed to the Sh387 billion allocation to break the impasse, the reduced amount would hinder the counties’ ability to meet crucial financial needs.
“We have had a stalemate on how much counties should receive and, recently, our MPs and Senators decided to allocate Sh387 billion. As the Finance Chair in the Council of Governors, I want to be clear that while we accept this amount categorically, we are not satisfied with the decision,” said Barasa.
Risk of Paralysis in Key Services
Governor Barasa warned that the decision would likely result in the paralysis of some critical county functions. He explained that counties require more funding to fulfill their devolved functions, particularly in areas such as healthcare, infrastructure development, and civil service salaries.
“We are not content because we will not be able to meet and realize some of the critical services we are mandated to deliver. From employee salaries to housing levies, industrial parks, and medical equipment servicing, counties need more financial allocations moving forward,” Barasa added.
Call for Support and Increased Funding in Future Allocations
Barasa also praised Senators for standing in solidarity with the governors’ call for a higher allocation and urged the national government to prioritize greater funding for counties in the coming years to fully realize the goals of devolution.
Lurambi Member of Parliament Bishop Titus Khamala expressed support for the governors’ position, urging MPs to collaborate with county leaders to ensure more funds are allocated in the future.
“We know the work our governors are doing and as members of the National Assembly, we should not be seen in conflict with them. We serve the same people and must work together to ensure counties receive sufficient funding,” Khamala said.
Resolution and the Road Ahead
The ongoing impasse over revenue allocation reached a resolution on Tuesday when the 18-member mediation committee agreed to approve the Sh387 billion allocation to counties. The decision marks the end of the standoff that had threatened to paralyze service delivery at the 47 county governments.
The allocation of Sh387 billion was a compromise after MPs voted to overturn the earlier Sh400 billion allocation, citing the impact of the rejected Finance Bill, 2024. Initially, MPs had agreed to cut the allocation by Sh20 billion, reducing the amount to Sh380 billion, while Senators had stood firm on the original Sh400 billion figure.
Despite the resolution, governors have reiterated their dissatisfaction with the final amount and are calling on lawmakers to prioritize the financial needs of counties in future budget discussions.
Political Support for Governors’ Position
ODM Leader Raila Odinga also voiced strong support for the governors, accusing MPs of undermining devolution by encroaching on the responsibilities of county governments. Speaking at his office in Nairobi, Raila urged both the National Assembly and Senate to resolve their differences and ensure an equitable and sufficient allocation for counties in future negotiations.
“MPs should not undermine devolution. The additional Sh20 billion is critical for the effective functioning of counties and the delivery of services to the people. I urge both the National Assembly and the Senate to work together and find a solution that empowers counties,” Raila stated.
Looking Ahead
With the Sh387 billion now approved, the focus shifts to the future of revenue allocation and the sustainability of devolution. Governors are determined to continue advocating for higher allocations to ensure that counties can meet their obligations and contribute meaningfully to national development.
