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Economist and KRA Chair Ndiritu Muriithi says Kenya has industrial capacity, but weak policy incentives and low confidence in locally made goods are slowing manufacturing. He urges counties to target interventions and improve local revenue collection.
The ministry said no Ebola case has been detected in Kenya so far, but warned that increased regional movement of people and goods raises the risk of cross-border transmission.
Ministry of Roads and Transport CS Davis Chirchir told the Senate that a proposed Road Maintenance Levy Fund formula would allocate 84.98% to national trunk roads and 15.02% to county roads, with ring-fenced county accounts.
A number of projects came under review during the sitting, including the Water for Household Project Phase II in Mwatate, Kerwa Dam rehabilitation in Mbeere South, Kathanje Earth Dam in Tharaka Nithi, and the Iganjo/Silanga Water Pan in Murang’a.
According to a recently published report, delayed disbursements, disputes over national versus county government functions, and inconsistencies in the application of revenue-sharing formulas are some of the notable challenges that have undermined the allocation process.
The CEO said the combination of historical decisions, governance gaps, and inconsistent policies has reinforced inequality, leaving a small group with significant control over national resources while many remain economically vulnerable.
The recommendations come after a three-month review of the Auditor-General’s reports for the 2024–25 financial year, which revealed persistent failures in financial management and oversight in counties.
Senate report flags counties over ethnic imbalance in hiring
According to the report by Margaret Nyakang’o, the arrears had reached Sh143 billion by December 31, 2025. Of this, Sh101.54 billion is from own-source revenue, while the rest is linked to debts owed by the Social Health Insurance Fund, the defunct National Health Insurance Fund and other liabilities.
Economist Bonnie Mwangi questioned the impact of the estimated Sh3.6 trillion allocated to counties over the past 11 years, arguing that there is little evidence of meaningful improvements in living standards.
Nandi Senator Samson Cherargei accuses governors of diverting county funds from bursaries and healthcare to office perks, warning that weak oversight and misuse of hospital revenue are undermining services.
The proposal recommends that the Controller of Budget should not approve any withdrawals from county funds where governors ignore or fail to respond to summons issued by the Senate to answer questions on financial management.