Council of Governors chairperson Ahmed Abdullahi before the Senate Finance and Budget Committee on March 6, 2025/HANDOUT
Governors are now demanding an allocation of Sh547 billion to the counties in the next financial year to ensure the seamless execution of their mandate.
The demand, they said, stems from the projected growth in the economy, the transfer of funds for functions still being performed from the centre and meeting non-discretionary obligations.
“In the IBEC (Intergovernmental Budget and Economic Council), we tabled Sh547 billion because of the projected growth in the economy and funds meant for devolved functions.” Council of Governors chairperson Ahmed Abdullahi said.
The Wajir governor spoke when he appeared before the Senate Finance and Budget Committee to discuss the Budget Policy Statement on Thursday.
The governors’ demand is inconsistent with the National Treasury’s, which has proposed an allocation of Sh405 billion to the devolved units besides the additional allocation.
The Commission of Revenue Allocation (CRA), on the other hand, wants the counties to be allocated Sh417 billion.
Meanwhile, the governors want parliament to pass the County Additional Allocation Bill without the component of the Roads Maintenance Levy Fund (RMLF) to unlock billions of shillings for various development projects.
The bill is to provide additional allocations to county governments.
The county chiefs argued that the devolved units need at least Sh73.78 billion to meet their non-discretionary financial obligations—a creation of the national government—and effectively run their administrations.
Although the Sh73.7 billion will be part of the Sh547 billion in an equitable share, it will only cater for the non-discretionary financial obligations that have come as a result of new taxes and other government programmes.
Abdullahi told the committee chaired by Mandera Senator Ali Roba that they want to procure new medical equipment for Sh39 billion.
They also want to pay Sh4.05 billion in housing levy, enhanced contributions to the National Social and Security Fund (NSSF), which is set to double in financial year 2025-26, estimated at Sh6 billion, and matching allocations for the County Aggregated Industrial Parks (CAIPs) Project for Sh11.75 billion.
Governors also contend that they should match allocations for the Community Health Promoters Program at a cost of Sh3.23 billion, sustainability of the basic salary increment as per the Doctors CBA 2017-21, and execute RTWF at a cost of Sh3.45 billion.
The governors poked holes in the National Government budget estimates that they said crouch into the mandate of the devolved units.
“We have looked at the Budget Policy Statement and feel that there are several functions that have been allocated funds, yet they are devolved functions,” said Abdullahi.
For instance, the national government has allocated Sh7.2 billion to the Ministry of Health for various programmes, including infrastructural support to hospitals, a free maternity programme (strategic intervention), and the procurement of family planning and reproductive health commodities.
In the state department for the Arid and Semi-Arid areas and regional development, the national government has been allocated Sh2.7 billion, which includes flood control, water irrigation projects, drilling of boreholes, dry land climate action plans, and riparian conservation projects.
“I have looked at the table you have provided, and I can quickly say that these are budgeted corruptions of Sh29 billion. These are the things that make us make noise outside there,” Kisii Senator Richard Onyonka said.
According to the governors, the National government has no business in allocating Sh1.01 billion for the construction and maintenance of rural roads, including the construction of access roads to Affordable Housing facilities and access to Industrial Parks
In addition, the state department of energy has been allocated Sh1.8 billion, the state department for water and sanitation Sh435 million, the state department for Agriculture Sh15.04 billion, while state department for environment and climate change Sh374.5 million votes governors say, should be given to counties.
The governors further charged that the County transfers must be consistent with the growth of the Gross Domestic Product (GDP) and ordinary revenues as is the case for the national government.
The County chiefs argued that between the financial years
