The Senate has reaffirmed its push for counties to receive a Ksh 465 billion allocation in the 2025 Division of Revenue Bill, citing rising statutory deductions and devolved responsibilities that have strained county finances. During deliberations on Tuesday, Senators emphasized the growing burden placed on devolved units, including the housing levy and enhanced contributions to the National Social Security Fund (NSSF), which they argue are significantly eating into counties’ operational budgets.
Senators warned that without an increase in the equitable share of revenue, counties would struggle to meet their obligations, particularly in clearing the backlog of pending bills that continue to hinder service delivery. “The deductions imposed on county budgets have diminished their capacity to operate effectively. We must adjust the allocation upwards to reflect the new financial realities,” stated a Senator during the debate.
In addition to financial strain, lawmakers noted that devolved functions such as health, agriculture, and early childhood education have expanded over the years without corresponding increases in funding. This mismatch, they said, has resulted in underfunded services and unmet obligations at the grassroots level.
Despite the push for more funds, Senators also challenged counties to enhance their own-source revenue. They urged devolved units to adopt innovative revenue collection systems, streamline operations, and curb wastage to complement allocations from the National Treasury.
The debate on county funding also reignited calls for equitable development across regions. The Senate emphasized that the national government must ensure balanced investment in infrastructure and public services to avoid marginalization of certain counties. “National development should reflect the diversity of the country, not just favor a few regions,” a Senator noted.
As Parliament prepares to finalize the 2025 budget cycle, the Senate’s stance sets the stage for negotiations with the National Assembly and the National Treasury. Counties have backed the Senate’s proposal, arguing that adequate funding is crucial for sustaining devolution and delivering on the promise of localized development.
The final decision on the Division of Revenue will be pivotal in shaping the future of county governance and public service delivery across Kenya.
