Governors Threaten to Boycott Future DORA Talks, Decry ‘Tokenism’ in Revenue Allocation » Capital News

NAIROBI, Kenya, Jun 16 – Governors are threatening to withdraw from future negotiations on the Division of Revenue Bill (DORA), citing frustration over what they describe as a predetermined process that undermines devolution.

The Division of Revenue Bill once passed into the Division of Revenue Act is a legislation that determines the equitable sharing of nationally raised revenue between the national and county governments each financial year.

However, governors say consultations around DORA have been reduced to a box-ticking exercise, with the views of county leaders disregarded despite the extensive transfer of functions from the national government to counties.

“It will be pointless to attend such negotiations if the allocation for the 2025/2026 financial year is anything to go by,” said Council of Governors Chairperson and Wajir Governor FCPA Ahmed Abdullahi.

“As the Council of Governors (CoG), we had proposed Sh536 billion as the equitable share for counties. However, the National Treasury has proposed only Sh405 billion in its budget estimates,” he added.

Abdullahi noted that the underfunding persists despite the transfer of over 200 functions to county governments functions costing more than Sh150 billion.

“It loses all meaning if the national government unilaterally decides county allocations. Our input must be meaningful not ceremonial,” he said.

The governors have also dismissed the ongoing mediation between the National Assembly and the Senate on the Division of Revenue Bill, 2025, as a hollow process that merely legitimizes decisions already made by the national government.

According to the proposed DORA 2025, counties are expected to receive Sh405.1 billion as their equitable share of revenue for the 2025/26 financial year an increase of Sh17.6 billion from the Sh387.4 billion allocated in the current 2024/25 cycle.

The county share has steadily grown in recent years from Sh316.5 billion in 2020/21 to Sh370 billion in 2021/22 and 2022/23 but governors argue that the rate of increase does not reflect the full cost of managing devolved functions.

During this year’s revenue-sharing consultations, the Council of Governors recommended an allocation of Sh465 billion. The Commission on Revenue Allocation (CRA) proposed Sh417 billion, while the National Treasury stuck to its Sh405 billion position.

Governor Abdullahi expressed disappointment with the outcome of the Intergovernmental Budget and Economic Council (IBEC), where both levels of government meet alongside the CRA and Treasury to negotiate revenue distribution.

“At the IBEC meeting, we deliberated and revised the CoG’s proposal to Sh536 billion, but the National Treasury’s earlier position of Sh405 billion was retained. It’s disappointing,” he said.

The Governors also criticized the Senate, accusing it of failing in its constitutional duty to safeguard devolution.

“The Senate has not stamped its authority in the DORA negotiations. We appear before the Finance and Budget Committee, but when things go wrong, they shift the blame to governors, yet we don’t have a seat at the table during mediation,” Abdullahi lamented.

He called on senators to adopt a firm and unified stance in the mediation talks, and to champion the CoG’s proposal and not the Senate’s Sh465 billion alternative.

“Senators must reject any figure that falls below what was costed during the unbundling of devolved functions. Settling for less than Sh150 billion worth of transferred responsibilities is unacceptable,” Abdullahi said.

Governors maintain that unless county allocations are reviewed upwards to reflect the full scope of devolved responsibilities, their continued participation in the Division of Revenue process will be in question.