At least 30 counties that had not commenced rolling out County Aggregation and Industrial Parks (Caips) and another five without headquarters stand to lose out on additional allocations to devolved units as MPs and senators close ranks on conditional and unconditional allocations to counties.
The development will finally unlock Sh70.6 billion to the 47 counties for the financial year ending June 30, 2026 ensuring stalled projects can continue.
Lawmakers have been embroiled in turf wars over additional funds to be sent to county governments, with senators pushing for Sh93.5 billion while MPs standing firm on Sh70.6 billion.
The point of contention has been the controversial Sh23.64 billion Roads Maintenance Levy Fund (RMLF), which is currently before court for determination on who between counties and national government should be in control of it.
Lawmakers have been embroiled in turf wars over additional funds to be sent to county governments, with senators pushing for Sh93.5 billion while MPs standing firm on Sh70.6 billion.
Photo credit: File I Nation Media Group
But after months of back and forth, senators have agreed to pass the County Governments Additional Allocation Bill, 2025 with amendments by the National Assembly approving Sh70.6 billion to go to counties.
The Bill contains both conditional and unconditional funds allocated to counties beyond the equitable share of revenue.
In its report to the House, the Senate Finance and Budget Committee agreed with amendments by the National Assembly, urging senators to support the same.
“For the sake of the counties and service delivery to our people in the 47 counties, we agreed to consider the amendments that had been proposed by the National Assembly,” said nominated Senator Tabitha Mutinda, the vice chairperson of the committee.
“I will be requesting fellow senators to vote yes, so that we close this matter, this particular financial year. In the next financial year, any deficiencies that will have been incurred will be dealt with then.”
Migori Senator Eddy Oketch, a member of the committee, also rallied the House to pass the Bill as is, saying the delay in passing the Bill will only lead to more interruptions in giving the funds to the counties.
He said that the difference, which has been occasioned largely by the omission of RMLF, is minimal to warrant opening up another back and forth between the two Houses.
“I would like to categorically say that is not indicative of any lack of effort or sense of giving up on the RMLF fight. We are still going to fight it. Let the court decision take due process. Once that court decision is done, we are still going to take it forward and fight for it,” said Mr Oketch.
Migori Senator Eddy Oketch.
Photo credit: File | Nation Media Group
Senator Mutinda added, “The reason we agreed to this (RMLF) is simply because this matter is in court. Both Houses felt that since it is a matter that is ongoing, we let the due court process take its course as directed by our Standing Orders.”
In the amendments, MPs proposed that counties whose CAIPs had moved to a greater percentage, close to above 50 percent, be given the balances of their money instead of allocating the funds to new counties in order to let the devolved units complete the projects.
Some 16 counties had commenced the projects with each devolved unit due to receive Sh250 million from the national government.
Further, the National Assembly deducted Sh1 million from each of the five counties without headquarters: Isiolo, Lamu, Nyandarua, Tana River and Tharaka Nithi.
Isiolo County will now get Sh59 million; Lamu, Nyandarua and Tana River Sh120 million; while Tharaka Nithi will be given Sh30 million.
This is after the MPs reduced the funds needed to complete the construction of the headquarters from the Sh454 million approved by the Senate to Sh449 million.
“As a Committee, we looked at this and said, instead of the back and forth, we would ensure that the Sh5 million is included in the next financial year so that the matter comes to an end,” said Ms Mutinda.
On the flipside, the National Assembly increased allocation to the Kenya Devolution Support Programme from Sh1.76 billion to approximately Sh3.43 billion.
The Kenya Informal Settlement Improvement Project allocation was also increased to Sh2.5 billion from Sh1 billion.
Despite supporting the committee's report, several senators called for the National Assembly to respect approvals done by the Senate on matters concerning counties.
“In as much as I support the motion, the National Assembly has no right to deduct the monies that we allocate to counties because they do not deal with counties. So, anything to do with the counties, they should just respect us and leave it at our suggestion,” said Machakos Senator Agnes Kavindu.
Machakos Senator Agnes Kavindu in Nairobi on August 7, 2023.
Photo credit: Evans Habil I Nation Media Group
Nominated Senator Catherine Mumma said the Senate should find a formula that will ensure additional allocations are not subjected to a process that delays their disbursement because such funds are ring-fenced.
“They are funds that should not be causing arguments, but we have subjected them to so much argument,” she said.
Meanwhile, Nairobi Senator Edwin Sifuna accused the National Assembly of blackmail. He urged the Senate committee to stand up to MPs and not give in to blackmail, such as being told that counties would suffer and salaries would not be paid.
“We should ask ourselves what would Raila say to a Bill that has reduced county allocation from Sh90 billion to Sh70 billion? He would not be here telling me that we are in the broad-based government. He would say ‘takataka’,” said the ODM Secretary-General.
