Governors willing to settle Sh10.5 billion roads fund dispute out of court to end stalemate
The National Assembly suggested allocating Sh25.3 billion, while the Senate pushed for the full Sh50.5 billion. Governors and the Senate support directing RMLF funds to county governments, while members of the National Assembly oppose the idea.
The Council of Governors (CoG) now says it is ready to withdraw a lawsuit regarding the Sh10.5 billion Road Maintenance Levy Fund (RMLF) if the National Treasury ensures counties’ interests are protected.
The dispute arose after counties were excluded from accessing RMLF funds, a move that CoG believes undermines county road development efforts.
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Governor Gladys Wanga of Homa Bay made this announcement during a session with the Budget and Appropriations Committee of the National Assembly, emphasising that the CoG is eager to resolve the issue without further legal proceedings.
“We are ready for consultations that will see the matter settled out of court. We are more than willing to discuss,” Governor Wanga told the committee, which was chaired by Alego Usonga MP Samuel Atandi.
The governors have been advocating for the swift passage of the County Governments Additional Allocation Bill 2025, which seeks to release Sh50.5 billion from development partners.
However, the bill’s approval has been delayed, mainly due to disagreements between the National Assembly and the Senate over the amount of funds to be allocated to counties.
Atandi pointed out that the delays have caused setbacks in the construction of roads under the Kenya Rural Roads Authority (Kerra)
"The Council of Governors needs to explore an out-of-court settlement because the roads that were being done by Kerra have stalled. The fast-tracking of this Bill will facilitate movement of funds to the counties," Atandi said.
The dispute centers on a previous version of the bill, which failed to pass due to conflicting proposals.
The National Assembly suggested allocating Sh25.3 billion, while the Senate pushed for the full Sh50.5 billion. Governors and the Senate support directing RMLF funds to county governments, while members of the National Assembly oppose the idea.
Governor Fernandes Barasa of Kakamega expressed frustration with the delays, stressing that they are adversely affecting county development projects. "The unnecessary delays in enacting this law affect works on development projects," he said.
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