Governors reject CRA proposal, demand increased county allocation
National
By
Ronald Kipruto
| May 06, 2025
Council of Governors (COG) Chairman Ahmed Abdullahi (from left) with Governors Ferdinand Barasa (Kakamega) before the Senate Finance Committee. March 6th, 2025 [Elvis Ogina, Standard]
The Council of Governors (CoG) has raised concerns over the Commission on Revenue Allocation’s (CRA) recommendation to allocate counties Sh417 billion in the 2025 Division of Revenue Bill.
Led by Kakamega Governor Fernandes Barasa, who chairs the CoG’s Finance, Planning, and Economic Affairs Committee, the governors say the proposed allocation is inadequate and heavily favors the national government, threatening devolution.
The County bosses are pushing for an increase to Sh536.8 billion, up from the current proposal of Sh459.7 billion.
Makueni Governor Mutula Kilonzo Jr supported the call for more funding, accusing the national government of bypassing county administrations when funding health projects.
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Governors demand higher allocations in Division of Revenue Bill 2025
He cited examples in Kigumo, Kibugu, and Lusigetti where hospitals were built or upgraded without county involvement.
According to Mutula, healthcare is supposed to be managed by counties under Kenya’s Constitution.
“This reminds me of the 2015 NYS and Medical Equipment leasing scandals. We are repeating the same mistakes,” warned Mutula.
He further claimed the national government’s funding decisions appear politically motivated, benefitting select regions while sidelining others.
“If this continues, it will weaken the role of counties and hurt devolution. The Senate must not allow it.”
The Makueni Governor also accused the National Treasury of skipping three key meetings meant to address concerns over the bill, making it difficult for county leaders to get clarity on the proposed allocations.
During a session of the Senate Standing Committee on Finance and Budget, which included Treasury officials and the CoG leadership, governors also called for several reforms, including the settlement of Equalisation Fund arrears and measures to address county budget deficits.
While senators and governors continue to press for a revised bill that ensures equitable distribution, both the Senate committee and CRA acknowledged that the quality of dialogue around the bill has improved.
Still, urgent changes are needed to protect devolution.