NAIROBI, Kenya – A fresh showdown is brewing in the Senate over the equitable share of revenue, with senators joining governors in rejecting the National Treasury’s proposed Sh405.1 billion allocation to counties.
Senators argue that the amount is insufficient to sustain devolved functions and accommodate rising financial obligations.
They are pushing for a Sh465 billion allocation, setting the stage for a heated confrontation with the Treasury in the coming weeks.
Mandera Senator Ali Roba, who chairs the Senate’s Finance and Budget Committee, said the additional Sh34.9 billion in their proposal accounts for critical expenditures such as the housing levy (Sh4.1 billion), increased National Social Security Fund contributions (Sh6 billion), and aggregation industrial parks (Sh11.8 billion).
He also cited Sh3.23 billion needed for community health promoters and Sh6.3 billion for annual wage increments within the Integrated Personnel and Payroll Database system.
Roba further questioned the Treasury’s rationale for capping the county allocation at Sh405.1 billion when ordinary revenue is projected to grow by Sh259 billion.
“Counties are only receiving a marginal increase of Sh17.7 billion, which limits their ability to effectively finance devolved functions,” he said.
The push for a higher allocation has also gained backing from Kakamega Senator Boni Khalwale, who accused the national government of withholding Sh29.7 billion that should have gone to counties.
“If that money had been rightfully allocated, shareable revenue would have risen from Sh387 billion to Sh419 billion. This is a crime scene,” Khalwale claimed.
The debate reignites a long-standing dispute over county funding, with governors insisting they need at least Sh547 billion to meet their obligations.
Nominated Senator Mariam Omar echoed their concerns, arguing that the Treasury’s budget includes Sh29 billion under the Ministry of Health for devolved functions, further shortchanging county governments.