NAIROBI — A storm is brewing between Kenya’s county governors and the national government over the allocation of public funds. Frustrated by what they see as a closed-door process, governors are threatening to pull out of negotiations on the Division of Revenue Bill, calling the entire exercise “pointless.”
Wajir Governor Ahmed Abdullahi, who chairs the Council of Governors (CoG), says the talks have become ceremonial. “We are invited to the table, but the decisions are already made,” he said. “It’s just to tick a box.”
The Division of Revenue Bill is crucial in Kenya’s budget cycle. It decides how national tax revenues are split between the central government and the 47 counties each financial year. But this year, the governors say they were not heard.
“For the 2025/26 budget, we proposed KSh536 billion. The National Treasury has given us KSh405 billion,” Abdullahi told reporters. “If this is how it will be going forward, then why should we even attend?”
A Growing Rift Over Devolution
At the heart of the dispute is the belief that the national government is ignoring the reality on the ground. County governments have taken over more than 200 functions from Nairobi, including healthcare, agriculture, and local infrastructure responsibilities worth at least KSh150 billion, according to the CoG.
“These are not just figures. These are classrooms, hospitals, and roads,” said Abdullahi. “You can’t dump all these duties on counties and refuse to fund them.”
The governors argue that the current budget does not reflect the true cost of running devolved services. “It’s not about charity. It’s our constitutional right,” said one county official who asked not to be named.
The proposed KSh405.1 billion allocation represents a KSh17.6 billion rise from the previous year. But the governors say it’s not enough. “The increase is a drop in the ocean,” Abdullahi said.
Senate Under Fire
The governors have also turned their fire on the Senate an institution that, in theory, exists to protect counties.
“The Senate has failed us,” Abdullahi said sharply. “They play both sides. They sit in mediation but leave governors out. Then, when things fall apart, they point fingers at us.”
He urged senators to fight harder during the mediation process between the National Assembly and the Senate, demanding the CoG’s full KSh536 billion proposal be honoured.
“Anything less than what was costed during the unbundling of functions should be rejected,” he said. “We’re not begging. We’re asking for what’s already ours.”
A History of Tensions
This isn’t the first time counties have pushed back. In 2020, a similar stand-off over revenue sharing saw governors threaten to shut down county services. That crisis was eventually resolved after weeks of political wrangling.
Since then, the share of national revenue sent to counties has increased from KSh316.5 billion in 2020/21 to KSh387.4 billion last year. But governors say the growth hasn’t kept pace with their responsibilities.
For the upcoming budget, the Commission on Revenue Allocation (CRA) had recommended KSh417 billion. The Senate had proposed KSh465 billion. But the Treasury stuck with KSh405 billion.
“This is not consultation,” Abdullahi said. “This is dictation.”
What Happens Next?
If governors follow through on their threat, it could delay the passage of the budget and disrupt county services. Already, some are calling for a constitutional review of the budgeting process to give counties more control.
For now, the Treasury remains quiet, and the Senate has yet to respond directly. But with the budget deadline approaching, pressure is mounting.
“The national government must stop taking counties for granted,” Abdullahi warned. “We are not passengers in this process. We are partners.”
As Kenya’s devolution journey continues, the question now is whether the country’s leaders can bridge the growing divide or whether counties will be left to carry the weight of national promises with empty pockets.
