County Governors are threatening to boycott future negotiations on the Division of Revenue Bill, claiming the process has been reduced to a mere formality with predetermined outcomes.
The Division of Revenue Bill (DoRB), also known as the Division of Revenue Act (DoRA), is a key piece of legislation that, upon enactment, provides for the equitable division of revenue raised nationally between the national and county governments in every financial year.
Frustrated county chiefs allege that their participation in the Division of Revenue Bill negotiations is only to “tick the box,” arguing that the discussions have become static and largely academic, with little regard for the realities of devolution.
Led by Wajir Governor Ahmed Abdullahi, who doubles as the Chairperson of the Council of Governors (COG) laments 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. As the Council of Governors (CoG), we had proposed Ksh536 billion as the equitable revenue share for counties. However, according to the budget estimates presented by National Treasury Cabinet Secretary John Mbadi, counties have been allocated only KSh405 billion,” said Governor Abdullahi.
“It loses all meaning if the national government unilaterally decides county allocations. Our input must be meaningful, not ceremonial,” he added.
They have dismissed the ongoing mediation process between the National Assembly and the Senate over the Division of Revenue Bill, 2025, as mere tokenism, accusing the national government of sidelining their input and treating the process as a box-ticking exercise with predetermined outcomes.
According to the proposed Division of Revenue Bill 2025, county governments are set to receive KSh405.1 billion as their equitable share of nationally raised revenue for the 2025/26 financial year. This represents a modest increase of KSh17.6 billion from the KSh387.4 billion allocated in the 2024/25 financial year.
In the previous cycle, the Division of Revenue (Amendment) Act, 2024 allocated KSh387.4 billion to counties following a mediation process between the National Assembly and the Senate.
Over the past five years, the equitable share has steadily risen—from KSh316.5 billion in 2020/21 to KSh370 billion in both 2021/22 and 2022/23.
However, governors argue that the increases fall far short of what is needed to fully support devolved functions, many of which have already been unbundled, costed, and transferred to counties—estimated to be worth at least KSh150 billion.
The equitable share is a critical lifeline for county governments, distributed using a formula that factors in population size, health services, agriculture, road infrastructure, and poverty levels.
During this year’s deliberations, the Council of Governors (CoG) had proposed an allocation of KSh465 billion. The Commission on Revenue Allocation (CRA) recommended KSh417 billion, while the National Treasury proposed KSh405 billion.
Abdullahi, speaking on behalf of his colleagues, voiced frustration with the outcome of the Intergovernmental Budget and Economic Council (IBEC) , a forum bringing together national and county governments, the CRA, and the National Treasury.
“At the IBEC meeting, we deliberated and revised the figure capped at Ksh 536 billion, but the National Treasury’s earlier proposal of KSh405 billion has been retained. It’s disappointing,” Abdullahi said.
The governors also criticized the Senate for what they termed as “lukewarm support” for counties, accusing the House of failing in its constitutional mandate to protect and defend the interests of county governments.
“The Senate has not stamped its authority in the DORA negotiations. We appear before the Finance and Budget Committee, but when things go wrong, they shift the 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 the mediation process and insist on the KSh 536 billion proposal advanced by the CoG not the Senate proposal of Ksh 465 billion
“Senators must reject any increment that falls below what was cost during the unbundling of devolved functions. Settling for less than KSh150 billion worth of transferred responsibilities is unacceptable,” he added.
