The Budget and Appropriations Committee, chaired by Hon. Samuel Atandi (Alego Usonga), has officially concluded public hearings on the Division of Revenue Bill, 2025. The hearings, which provided a platform for stakeholders and the public to voice their concerns and recommendations, focused on the allocation of resources between the national government and county governments for the upcoming financial year.
A key proposal from the Council of Governors (CoG) was a significant increase in the County Equitable Share for the Financial Year 2025/26. The CoG called for an additional Kshs. 131.78 billion, bringing the county allocation from the Treasury's proposed Kshs. 405.1 billion to Kshs. 536.88 billion. Governor Fernandes Barasa of Kakamega County, who also chairs the CoG Finance Committee, argued that the proposed allocation falls short of the growth trends in the country’s revenues and GDP.
"Between FY 2020/21 and 2024/25, the equitable share for counties has only increased by Kshs. 70.9 billion, while ordinary revenue has grown significantly, from Kshs. 1.8 trillion to Kshs. 2.6 trillion, and is projected to hit Kshs. 2.8 trillion for FY 2025/26. We urge the National Assembly to reconsider the resource allocation framework to better reflect these macroeconomic trends," Governor Barasa said during the hearings.
Governor Barasa, alongside Nandi County Governor Hon. Stephen Sang, also raised concerns over the reliance on outdated audited accounts for revenue-sharing, particularly pointing out the Equalization Fund, which has been impacted by the use of accounts that are now five years old. The CoG called on the National Assembly to expedite the approval of these audited accounts to ensure more accurate revenue-sharing.
In a related matter, the Budget Committee’s Vice-Chairperson, Hon. (Dr) Robert Pukose (Endebess), highlighted the ongoing delays in payments to Community Health Promoters (CHPs), which vary across counties. Governor Barasa proposed a more streamlined system where CHPs would receive their allowances from a single source, with signatories from both the national and county governments, to address these delays.
The Commission on Revenue Allocation (CRA), represented by Vice-Chairperson Commissioner Koitamet Olekina and Commissioner Hon. Fatuma Gedi, also participated in the hearings. The CRA proposed an increase of Kshs. 12.3 billion to the county allocations, bringing the total to Kshs. 417.4 billion, while recommending a slight reduction in the National Government's share from Kshs. 2.419 trillion to Kshs. 2.410 trillion. Commissioner Olekina stressed that the decline in county allocations negatively impacts service delivery and undermines the objectives of devolution.
The CRA was also questioned about the formula used for the Equalization Fund and the delays in implementing public participation projects. Commissioner Gedi acknowledged the challenges, attributing some of the delays to court cases and political interference in project selection. She emphasized the need for proper public participation and better criteria for future projects.
With the public hearings concluded, the Budget and Appropriations Committee is set to table its report on the Division of Revenue Bill, 2025, when the House resumes sittings next week after a short recess. The outcome of these discussions will have significant implications for resource allocation across the country, shaping the financial landscape for the coming year.
#KenyaBudget2025 #Devolution #RevenueSharing #PublicParticipation
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