Counties stand to lose Sh50b as Senate, MPs clash over bill
Saturday 29th March, 2025 06:20 AM|

The 47 devolved units are staring at a loss of Sh50.5 billion meant for the implementation of donor-funded projects as senators and MPs clash over a crucial Bill.
This is after the two Houses of Parliament—Senate and National Assembly—passed own versions of the County Governments Additional Allocation Bill, 2025. County chiefs have waited for nine months for parliamentary approval of the bill to unlock the funds.
This is after governors went to court to challenge the blocking of the counties from benefitting from Sh10.5 billion from Roads Maintenance Levy Fund (RMLF).
Yesterday at the Senate plenary special sitting, members accused their National Assembly counterparts of frustrating the passage of the bill and branded them enemies of devolution. Senators took on the MPs for undermining devolution by grabbing funds meant to develop counties.
Senate Majority Leader Aaron Cheruiyot said it was unfortunate that the County Government Additional Allocation Fund Bill could be used as a basis to undermine devolution, with the funds delaying for the more than eight months.
“It is embarrassing that the push-and-pull between the Senate and National Assembly has led to the delay in the implementation of the proposals in the Bill with Sh10 billion Roads Maintenance Levy Fund at the centre of contention,” said Cheruiyot, adding that he couldn’t recall ever moving a Bill for monies to counties this late.
“This is a very untidy situation and I hope this never happens again. We never knew that a decision made in the best interest of equity will later be used to undermine devolution,” he added.
Nairobi’s Edwin Sifuna said that while senators are also MPs, it is they (senators) who took an oath to defend counties.
“We have kept counties waiting for these resources for such a long time because of disputes between leaders. We had agreed that there doesn’t exist a Kenyan who belongs to the national government or the county government,” he said.
James Murango (Kirinyaga) and Richard Onyonka (Kisii) termed MPs as the biggest enemies of devolution.
“We must be the defenders of devolution and MPs must decide whether they want to be tenderprenuers in government projects and deals, or whether they are going to serve the public by ensuring money goes to counties,” said Onyonka.
Last week, the National Assembly passed their version of the Bill, giving counties Sh25.31 billion in additional allocation – grants and loans from donors and national government.
“Let it go on record that the greatest enemies of devolution in this country is the National Assembly,” Kitui Senator Enoch Wambua said.
Senate Chief Whip Boni Khalwale, who seconded the motion, said the donors must be wondering about Kenyans since they provided money to be used in counties but it is held in bank accounts due to the stalemate with the countries already charging interest on the money given.
“Governors, Senators and Members of National Assembly have proved to be the enemies of the people since this Bill is supposed to make counties function effectively, this country will succeed or fail if leaders act,” said Khalwale.
Khalwale accused Members of National Assembly of creating a stalemate because they want to benefit from these contracts since some of them have companies and have vowed to stall the process if the counties are allowed to be in charge of the contentious Roads Maintenance Levy Fund.
Despite the two Houses agreeing to exclude RMLF from the Bill, they have still clashed on other grants and donor funds that should go to the counties. The fresh standoff comes barely three months to the end of the financial year, a move that could further delay the unlocking of the funds.
However, the senators have also approved their version, giving the devolved units Sh50.5 billion in the current financial year. In the passed version, the senators have given the counties Sh8.41 billion from the National Government’s share of revenue in the 2024-25 financial year.
In addition, the senators gave the counties S116.09 million from the proceeds of court and Sh42.01 billion from proceeds of loans and loans from development partners.
Last week, governors threatened to shut down counties if the county funds ‘deducted’ by the MPs were not reinstated. “From this deduction, county governments will lose a whooping Sh38.4 billion of the Additional Allocations, of which Sh24 billion are Conditional Grants,” CoG Vice Chairperson Mutahi Kahiga said.
According to the Bill passed by the National Assembly, the MPs gave the counties Sh7.84 billion from the National Government’s share of revenue in 2024-25 FY.
The MPs also gave the devolved units Sh17.36 billion from the proceeds of loans or grants from development partners for the 2024-25 financial year.
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