Counties face collapse without allocation of KES 450 billion shareable revenue,says Governors

The Council of Governors (CoG) is cautioning that counties could face a standstill if they are not allocated KES 450 billion in shareable revenue.

Speaking before the Senate Finance Committee, CoG, led by Chairperson Anne Waiguru, emphasised that counties are struggling to stay afloat due to high wage bills and outstanding debts.

Appealing to the Senate to advocate for devolution, she also highlighted the discrepancy where functions are devolved but funds are still retained by ministries.

The council warns that proposed taxation changes will only exacerbate the wage bill burden. They estimate that new deductions like the Housing Levy will add approximately KES 4 billion to counties’ expenses, while the new National Social Security Fund (NSSF) deductions will cost an additional KES 3 billion.

The Governors further pointed out that the implementation cost of the doctors’ Collective Bargaining Agreement (CBA), including payment of arrears, is estimated at KES 5.8 billion and must be considered in the allocation of shareable revenue.

Governor Muthomi Njuki, who also chairs the Health committee at the COG, expressed concern, stating, “I want to address doctors directly and convey that without this funding, even with a new CBA signed, counties won’t be able to honor payment commitments.”