Members of National Assembly on Monday firmly rejected Senate amendments that sought to increase county governments’ equitable share of revenues by KES 24.84 billion to KES 415.95 billion for the 2024/25 fiscal year.
In a tense special sitting, MPs overwhelmingly voted down the Senate’s proposed changes to the Division of Revenue Bill, 2024, a crucial legislation that determines the splits of nationally raised revenues between the national government and the 47 devolved county administrations.
Leading the charge against the Senate’s amendments was Ndindi Nyoro, the chairman of the National Assembly’s powerful Budget and Appropriations Committee. He argued that accepting the senators’ proposal would necessitate painful cuts to other critical expenditure areas within a fixed budgetary envelope.
“I want to make it clear, that as the National Assembly and the Budget Committee, we fully support devolution, but we are also operating on a fixed envelope,” implored Nyoro. “I request this House to allow us to proceed to mediation so that we can have a middle ground.”
The committee chair highlighted adjustments made since the Budget Policy Statement’s approval earlier this year, slashing projected expenditure by nearly KES 270 billion to around KES 3.913 trillion. Despite the cuts, county allocations were preserved at KES 391 billion under the committee’s proposal.
Majority Leader Kimani Ichung’wah warned that acceding to the senators’ demands would inevitably undermine funding for crucial national government programs and constituencies’ development initiatives. “If we were to agree with the Senate proposals, out of the funds you are receiving in your Constituency for road maintenance and NG-CDF, the Budget Committee will have no choice but to sacrifice your funds to the county governments,” he cautioned.
However, Minority Leader Opiyo Wandayi disagreed, urging the formation of a special committee to comprehensively review county functions and their associated costs. “I agree in totality with the Senate in their proposed amendments to the Division of Revenue Bill,” he said, arguing that reallocating funds within the KES 3.9 trillion budget could accommodate the Senate’s request.
With both chambers digging in, Speaker Moses Wetang’ula appointed a 9-member mediation committee to broker a compromise between the two houses on this thorny fiscal issue.
The standoff spotlights the inherent tensions in Kenya’s devolved governance system, now in its 11th year. While counties have increasingly taken over pivotal functions like healthcare and infrastructure development, they have perennially feuded with the national government over what they view as inadequate funding to match their growing responsibilities.
