A push is underway in the Senate to change how county governments are funded, with lawmakers calling for a model that reflects the actual cost of services instead of relying on the fixed percentage currently allocated from national revenue.

The Senate Finance and Budget Committee is leading the call for a revision of the revenue-sharing formula between the national and county governments.

Senators say the existing model, which gives counties at least 15 percent of the most recently audited national revenue, fails to match the real financial burden of devolved services, leading to poor implementation.

“We strongly believe that functions must be properly costed. We should not continue talking about 15 per cent without knowing the real cost of delivering these services,” said Migori Senator Eddy Oketch, a member of the committee.

Oketch warned that many counties are unable to perform their roles effectively because the resources they receive fall far short of what is required. He added that the committee is working to ensure that revenue allocation is tied directly to the actual expenses involved in delivering services.

He pointed to healthcare, which is fully devolved, as a clear example of underfunding despite being one of the most critical responsibilities counties manage.

He noted that although counties are expected to run the sector, large amounts of money still remain with the national Ministry of Health.

Oketch made these remarks during a session of the Senate Public Investments and Special Funds Committee, where he serves as vice chair.

The committee had met with Makueni Governor Mutula Kilonzo Jr, who chairs the Council of Governors’ Legal Affairs Committee, to discuss audit queries related to hospital operations in Makueni.

The senator said the health sector continues to suffer due to lack of proper funding, with many counties using nearly half of their budgets on healthcare but still struggling to meet basic service needs.

“Despite huge allocations, healthcare facilities remain underfunded, grappling with inadequate personnel and essential supplies, which undermines service delivery,” he said.

Governor Mutula noted that in Makueni, 38 percent of the county's budget is spent on healthcare. Of the county’s 3,900 workers, 2,200 are in the health department. He called on the Senate to demand accountability from the Intergovernmental Relations Technical Committee (IGRTC) on the transfer and costing of devolved functions.

“In 2013, we allocated nearly Sh1 billion – precisely Sh900 million – to IGRTC for this purpose. The Senate must summon them to account for their progress,” he stated.