The Council of Governors (CoG) has expressed deep concern about the delays in finalising the Division of Revenue (Amendment) Bill 2024 (DORA) and enacting the County Allocation of Revenue Bill (CARB), warning that these delays are crippling county governments.

In a Monday, November 18, press statement, the CoG praised the Senate for retaining the county's equitable allocation of Ksh400.117 billion, emphasising the importance of the amount in implementing devolved functions and supporting grassroots service delivery.

However, the CoG sharply criticised the National Assembly's decision to propose a Ksh20 billion reduction in the equitable share, claiming that such a move would undermine service delivery and push counties to the brink of collapse.

The Council noted that, despite being five months into the fiscal year 2024/25, the County Allocation of Revenue Act has yet to be enacted, preventing county governments from receiving their equitable allocations.

Meanwhile, the National Government continues to receive shareable revenue following the passage of the Supplementary Appropriations Act 2024, highlighting a significant imbalance in resource allocation.

The CoG expressed strong opposition to the National Assembly's proposed reductions and the passage of the Supplementary Appropriations Act 2024, calling the process "un-procedural and unconstitutional."

The Council argued that the Act is based on figures from a bill that is still being negotiated in Parliament, which violates the Supreme Court Advisory Reference No. 3 of 2019.

The Advisory prohibits Parliament from passing an appropriation bill until the Division of Revenue Bill is finalised.

The CoG described these actions as a direct affront to devolution, warning that they threaten the constitutional framework that underpins devolved governance.

To ensure continuity of county operations amid the funding impasse, counties have resorted to accessing up to 50% of their equitable share based on the 2023/24 financial year’s allocations. 

This stopgap measure, guided by Regulation 134 of the Public Finance Management (National Government) Regulations of 2015, has temporarily alleviated the crisis.

However, the CoG emphasised that this is not a sustainable solution and called for an immediate resolution to the revenue allocation stalemate.

The CoG has reiterated its position that the equitable share allocated to counties is based on historical audited accounts and is a constitutional right rather than a privilege.

It has urged the National Treasury to release funds to counties and Parliament to end the impasse and protect critical services and millions of Kenyans' livelihoods