By TWV Team
A storm is brewing over the 2025/26 Division of Revenue Bill as governors threaten to boycott future negotiations, citing frustration over what they term a ‘tokenistic and predetermined’ budgetary process that sidelines counties.
The Council of Governors (CoG), led by Chairperson Ahmed Abdullahi (Wajir), has condemned the National Assembly’s rejection of the Senate’s proposal to allocate at least Sh465 billion to the 47 counties. Instead, the National Treasury has capped the allocation at Sh405.1 billion, a modest increase from the Sh387.4 billion allocated for 2024/25.
‘This process has lost meaning. It will be pointless to attend such negotiations if the allocation for 2025/26 is anything to go by,’ said Mr Abdullahi.
The governors had proposed Sh536 billion, a figure they say reflects the cost of devolved functions. According to Mr Abdullahi, at least 200 devolved functions have been identified, cost Sh150 billion, and transferred to counties. Yet, this added responsibility is not adequately factored into the current revenue-sharing formula.
‘We deliberated at the Intergovernmental Budget and Economic Council (IBEC) and revised the figure upwards to Sh536 billion. But the National Treasury’s original proposal of Sh405 billion has been retained. It is disappointing,’ he added.
The Division of Revenue Bill is a critical annual law that determines how nationally collected revenue is shared between the national and county governments. The Constitution mandates a consultative process, but governors argue their role has become ceremonial.
More fuel was added to the fire after the Senate failed to push back against the National Assembly’s decision. The CoG now accuses the Senate of reneging on its constitutional mandate to protect county interests.
‘The Senate has not stamped its authority in these negotiations. We appear before the Finance and Budget Committee, but when things go wrong, they shift the blame to governors, yet we do not have a seat at the mediation table,’ Mr Abdullahi lamented.
He urged senators to adopt a firm stand and insist on allocations that reflect the cost of devolved functions. ‘Settling for anything below Sh150 billion, the value of transferred responsibilities, is unacceptable,’ he asserted.
In the Senate, Migori Senator Eddy Oketch echoed the governors’ sentiments, warning that the Sh405 billion allocation undermines devolved governance and violates Article 203 of the Constitution, which mandates equitable resource sharing between national and county governments.
‘Counties will barely have funds left for discretionary development. A National Assembly bill proposing just Sh405 billion undermines the system of devolved governance that has brought hope to Kenya,’ he said.
The deepening standoff has exposed simmering tensions between the national and county governments, with governors insisting that their voices must count in decisions that directly affect service delivery to millions of Kenyans.
As budget timelines draw near, pressure mounts on the Senate to reassert its role and on the National Treasury to embrace genuine consultation. Otherwise, the promise of devolved governance may be steadily eroded by centralised fiscal control.
