House commences debate on the Division of Revenue Bill, 2025

𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐬𝐬𝐞𝐦𝐛𝐥𝐲 𝐂𝐡𝐚𝐦𝐛𝐞𝐫 
𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝐀𝐩𝐫𝐢𝐥 𝟑𝐫𝐝 𝟐𝟎𝟐𝟓

The National Assembly has commenced debated on the Division of Revenue Bill (National Assembly Bill No. 10 of 2025). The Bill seeks to ensure the equitable allocation of nationally raised revenue between the national and county governments.

The Bill, moved for Second Reading by Chairperson of the Budget and Appropriation Committee, Hon. Samuel Atandi, is anchored in Article 218 of the Constitution and is essential for sustaining government functions and delivering services to citizens.

While moving the Bill, Hon. Atandi highlighted Kenya’s improving economic trajectory, attributing it to strong macroeconomic fundamentals. "We are discussing this Bill at a time when fundamentally our economy is recovering. This has been buttressed by very fundamental macro-economic factors that point to the fact that we are doing so well as an economy," he stated.

Hon. Atandi pointed to tourism and housing as major sectors poised to drive economic growth. “The peace and tranquility following the formation of the broad-based government will yield positive results in the tourism sector. Additionally, the affordable housing programme, one of the biggest BETA programmes in this country, is doing extremely well.”

The Division of Revenue Bill, 2025 outlines revenue allocations for the 2025/26 financial year, with the total shareable revenue estimated at Kshs. 2.835 trillion. 

The proposed allocations include Kshs. 2.419 trillion for the national government, Kshs. 405.1 billion for county governments, and Kshs. 10.6 billion for the Equalization Fund. This represents an increase of Kshs. 17.7 billion from the previous financial year’s allocation to counties.

Despite the structured allocations, lawmakers' called for the use of updated audited revenue figures.

Hon. Makali Mulu questioned why the Bill is based on the 2020/2021 audited accounts, creating a three-year lag. “The issue is sharing revenue, so it means then the key factor in determining the whole Bill is revenue. That is why I have concerns when I see in this Bill that we are still discussing audited approved accounts of 2020/2021 financial year,” he said.

In it's Report the Budget and Appropriations Committee recommended fast-tracking approval of more recent audited revenue figures to ensure allocations reflect the current economic situation.

Speaking on revenue mobilization and economic growth drivers, Deputy Majority Leader, Hon. Owen Baya emphasized the role of key institutions in achieving fiscal targets. "This Division of Revenue Bill requires everybody to work hard. KRA must work hard for us to realize the things we want to achieve. The Ministry of Finance must ensure that expenditure and disbursement of funds are done efficiently."

Lawmakers' reaffirmed their support for devolution, countering claims that the National Assembly was against county governments. 

Hon. Mwengi Mutuse asserted, “There’s a notion that the National Assembly is opposed to devolution. I want to go on record that many of us support devolution as the number one thing that happened to this country in order to equalize the sharing of resources.”

In it's Report, the Committee on Budget and Appropriations noted that despite an increase in county allocations, the proposed Kshs. 405.1 billion falls short of the Commission on Revenue Allocation’s (CRA) recommendation of Kshs. 417.4 billion. The discrepancy, amounting to Kshs. 12.3 billion, arises from differing revenue projection methodologies. While CRA based its recommendations on expenditure needs analysis, the National Treasury considered resource availability and national fiscal obligations.

Members of the National Assembly highlighted persistent delays in transferring funds to counties due to revenue underperformance, which has disrupted service delivery. 

Additionally, concerns were raised over the Equalization Fund, which was initially designed to address historical marginalization but has been diluted by funding numerous small-scale projects.

“The Equalization Fund was intended to drive tangible development in marginalized areas. However, its current implementation has deviated from this goal, rendering these initiatives largely ineffective,” said Hon. Adan Keynan.

Hon. Naisula Lesuuda underscored the need for enhanced revenue collection to meet budgetary demands. 

She also urged Members of Parliament to approach the Bill with a focus on facts rather than political grandstanding. "I do hope that this time, in case there’ll be a mediation, there won’t be unnecessary pull and push just for the sake of it. It should be guided by facts, "stated Hon. Naisula Lesuuda.

Debate on the Division of Revenue Bill, 2025 is expected to contiue before the Bill proceeds to the Committee of the Whole House.