The Council of Governors (CoG) has intensified its standoff with the national government over the implementation of affordable housing and market construction projects, insisting that these devolved functions should be under county control. The dispute has now taken a new turn, with the CoG calling on the Controller of Budget (CoB) to halt the national government’s multi-billion-shilling projects in these sectors.
The demand was reinforced during a two-day retreat of the Executive and Liaison, Management, and Business Committee held at Enashipai Spa in Naivasha. Nyeri Governor and Committee Chair Mutahi Kahiga emphasized that affordable housing and markets fall within county jurisdiction, arguing that the same legal principle used to stop counties from issuing bursaries—citing it as a national function—should apply to these projects.
“The Controller of Budget recently stopped counties from issuing bursaries, citing it as a function of the national government. The same principle should apply to housing and markets, which are devolved functions,” said Kahiga, addressing the press alongside fellow governors.
Beyond the housing dispute, the CoG raised concerns over the lack of a pension and medical scheme for governors, highlighting that county chiefs lack financial security after leaving office.
“It’s only governors and MCAs who do not have a pension scheme. We have initiated a process to establish one, along with a comprehensive medical cover for governors,” Kahiga noted.
On matters of revenue allocation, governors rejected the Commission on Revenue Allocation’s (CRA) proposed formula, warning that it would disadvantage 31 counties. They demanded the reinstatement of the Ksh 400.1 billion equitable share, arguing that counties should receive a proportional increase in line with the national budget growth.
The governors also weighed in on the Cabinet’s recent decision to merge 42 state corporations and abolish six, insisting that any resources from affected entities should be transferred to county governments.
“The Cabinet must implement its decision in a manner that ensures all devolved functions, along with their resources, are transferred to counties,” Kahiga asserted.
In another bold move, the CoG resolved to stop contributions to Tier II under the NSSF Act, stating that counties would enact their own legislation to manage urban financing.
To ensure accountability, governors demanded that national ministries undertaking county functions must sign Intergovernmental Participation Agreements (IPA) as mandated by law.
“Going forward, the Controller of Budget should immediately stop approving any national government spending on county functions unless there is a legally binding IPA,” Kahiga concluded.
This growing dispute underscores the ongoing tensions between the national and county governments over the devolution of key functions, with governors pushing for greater autonomy in managing development projects within their jurisdictions.
