Governors have threatened to boycott future negotiations on the Division of Revenue Bill, claiming the process has been reduced to a mere formality with predetermined outcomes.

The threat comes after the National Assembly rejected the Senate’s proposal to allocate at least Ksh465 billion to the 47 devolved regions as their equitable share for the 2025-26 financial year.

The Division of Revenue Bill provides for the equitable division of nationally raised revenue between national and county governments, each financial year, to ensure proper government functioning and service continuity.

Council of Governors chairperson Ahmed Abdullahi (Wajir) said that despite the unbundling, costing, and transfer of at least 200 functions to county governments – estimated to be worth Ksh150 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,” said Abdullahi.  

Governors “had proposed Ksh536 billion as the equitable revenue share for counties. However, according to budget estimates presented by National Treasury Cabinet Secretary John Mbadi, counties have been allocated only Ksh405 billion.”

He added: “It loses all meaning if the national government unilaterally decides county allocations. Our input must be meaningful, not ceremonial.”

Modest increase

According to the bill, county governments are set to receive Ksh405.1 billion for the 2025/26 financial year, representing a modest increase of Ksh17.6 billion from the Ksh387.4 billion allocated in 2024/25.

During this year’s deliberations, GoG requested Ksh465 billion, the Commission on Revenue Allocation recommended Ksh417 billion, while the National Treasury proposed Ksh405 billion.

Abdullahi voiced frustration with the outcome of the Intergovernmental Budget and Economic Council (IBEC) meeting.

“At the IBEC meeting, we deliberated and revised the figure, capping it at Ksh536 billion, but the National Treasury’s earlier proposal of Ksh405 billion has been retained. It’s disappointing,” he said.

Governors also criticised the Senate for “lukewarm support” for counties, accusing the House of failing in its constitutional mandate to protect county government interests.

“The Senate has not stamped its authority in the [division of revenue] negotiations. We appear before the Finance and Budget Committee, but when things go wrong, they shift 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 mediation and insist on the Ksh465 billion proposal.

“Senators must reject any increment that falls below what was costed during the unbundling of devolved functions. Settling for less than the Ksh150 billion worth of transferred responsibilities is unacceptable,” he added.

During the Senate debate, Eddy Oketch (Migori) argued that allocating only Ksh405 billion undermines devolution and violates Article 203 of the Constitution, which guarantees equity in resource distribution.