Counties cry foul over Sh405bn budget, demand Sh536bn to avert crisis

The row between the national and county governments over budget allocations has intensified, with governors rejecting the Sh405 billion passed by the National Assembly and accusing the Treasury of sidelining devolution.

Governors are demanding at least Sh536 billion for the 2025–26 financial year, saying anything less will cripple service delivery and violate the principles of equitable distribution. They argue the current proposal ignores inflation, new responsibilities, and the real cost of running counties.

Fernandes Barasa, chair of the Council of Governors’ Finance Committee, said the budget figure presented by the National Assembly was not acceptable and failed to reflect current economic realities.

“We urge the Senate to review the resource allocation framework to align with the macroeconomic and growth trends,” Barasa told senators.

Barasa added that the national government’s share has been growing by Sh700 billion annually, while that of the counties has remained almost unchanged.

He also criticised the Division of Revenue Bill for failing to reflect recently defined responsibilities between the two levels of government.

The Senate had attempted to offer a middle ground at Sh465 billion, while the Commission on Revenue Allocation (CRA) had earlier proposed Sh417 billion.

Both suggestions were dismissed by the National Assembly and Treasury, who stood by the original Sh405 billion figure.

CRA Chairperson Mary Chebukati challenged the explanation by the national government that some of the funds were for national interest.

“The national interests can be implemented at any level of government based on the law of subsidiarity,” she said.

Governors have warned that a failure to agree could delay the Division of Revenue Bill and disrupt the flow of funds to counties.

This could trigger mediation and a constitutional crisis over the allocation of resources between the two levels of government.

Barasa expressed frustration that while counties are taking on more responsibilities, key parastatals performing devolved functions remain under the national government’s control. He urged the transfer of both the functions and the required funds.

He highlighted that counties are dealing with Sh73 billion worth of unfunded roles, including housing levy deductions (Sh4 billion), NSSF contributions (Sh6 billion), matching funds for aggregation parks (Sh11 billion), and for Community Health Promoters (Sh3.3 billion). He also mentioned Sh39 billion for new medical equipment, Sh6.3 billion for wage increments, and Sh3.45 billion for doctors’ salary adjustments.

A further point of contention is the allocation of Sh29 billion to national entities for functions that the constitution places under the counties.

Other Topics To Read

• Headlines
• National
• National Assembly
• Senate
• Treasury
• governors
• Counties cry foul over Sh405bn budget
• demand Sh536bn to avert crisis

Makueni Governor Mutula Kilonzo Jr said the national government was using the budget to push political interests rather than support counties.

“This is nothing short of a scandal. If these funds were given directly to counties, we could achieve far more without wasteful duplication,” he said.

Mutula cited specific allocations such as Sh2 billion for free maternity, Sh2 billion for vaccines, Sh500 million for family planning, Sh1.8 billion for reproductive health, Sh2 billion for ASAL department projects, and more for irrigation, roads, and agriculture.