Governors hail performance but there is lots of ground to cover

Council of Governors(COG) Chairperson Ahmed Abdullahi led Governors as he deliver their Annual State of Devolution address at the COG head office in Nairobi on August 6, 2026. [Boniface Okendo, Standard]

County governments have reported significant progress in expanding healthcare, education, agriculture and other devolved services, but warned that inadequate funding, delayed transfer of devolved functions and capacity constraints continue to hinder the full implementation of devolution.

Delivering the 2025/26 State of Devolution Address, Council of Governors Chairperson Ahmed Abdullahi said counties had strengthened service delivery across key sectors while calling for faster transfer of devolved functions together with the resources required to implement them.

"Our ultimate priority will be to deliver quality, accessible and affordable services to all Kenyans to close the socio-economic divide," Abdullahi said.

The report, the twelfth in the 13 years of devolution, highlights health, education and agriculture as among the strongest performing devolved sectors, with counties continuing to expand legal frameworks, increase investments and improve service delivery despite fiscal pressures.

According to the governors, their units are still lagging in collecting revenue. Out of the county governments projected total revenue of Sh633.3 billion, they managed a paltry Sh53.88 billion as their own source revenue. This, however, is a 17 per cent increase from the previous year's collection. Counties such as Samburu, Garissa, Kirinyaga, West Pokot and Trans Nzoia were mentioned for exceeding their annual collection targets.

The counties however owe suppliers Sh156.84 billion as of March 31, 2026, pending bills they blame on delays in the disbursement of equitable share and additional allocations, as well as shortfalls in achieving projected revenue targets.

Health remains the largest county function, accounting for 35.38 per cent of the county workforce. The report notes that counties have continued strengthening primary healthcare systems, community health services and referral coordination through Primary Health Care Networks while documenting innovations aimed at improving access to quality healthcare. It also highlights county-led efforts to improve maternal and newborn health through Maternal and Perinatal Death Surveillance and Response (MPDSR) and integrated service delivery models.

In education, enrolment in pre-primary schools increased by 7.1 per cent from 2.9 million learners in 2024 to more than 3.12 million in 2025, attributed to increased county investments and incentives.

The number of ECDE teachers also rose to 81,843, while county governments collectively allocated Sh6.8 billion to pre-primary education. Counties further invested Sh2.38 billion in vocational education and training, including Sh1.28 billion for construction, rehabilitation and equipping of vocational training centres.

Agriculture also remained one of the best-developed devolved sectors, with 34 of the 47 counties reporting legal frameworks supporting agricultural services. The Council said continued investment in agriculture has strengthened extension services, enhanced food production and supported farmers, reinforcing the sector's role in local economic growth.

The governors said all sectors recorded good growth courtesy of the investments made. Horticulture, for example, was said to be the country's leading agricultural export, netting Sh152 billion, while coffee and tea exports also grew significantly,

Under the livestock section, the report notes milk production has surpassed the 1 billion liter mark while cotton production also rose from 6,200 tonnes to 8,800 tonnes, "contributing to the revival of the textile and apparel industry. However, wheat deliveries declined from 294,300 tonnes to 240,600 tonnes, while sugarcane deliveries fell sharply from 9.4 million tonnes to 7.1 million tonnes, highlighting continued dependence on imports and the need for greater investment in productivity, processing  infrastructure and farmer support".

The devolved units also report that animal vaccination as well as artificial insemination services were enhanced.

Reacting to the erratic weather patterns, the governors reported: "Climate resilience remained a major priority. Most reporting counties invested in irrigation infrastructure, developing substantial water storage capacity and irrigation potential while directly supporting more than 97,000 farmers. Counties also promoted fodder production, covering over 34,000 hectares and producing more than 7.4 million tonnes of fodder for nearly 88,300 beneficiaries. These investments strengthened drought preparedness and improved livestock survival during periods of climate stress."

Despite the progress, the Council said unresolved intergovernmental issues continue to undermine service delivery. The report identifies the delayed unbundling, costing and transfer of devolved functions as one of the biggest obstacles facing counties, noting that resolutions by the National and County Governments Coordinating Summit and the Intergovernmental Budget and Economic Council on transferring resources to counties remain pending.

The report also cites funding gaps across several sectors.

In wildlife conservation, counties said financial constraints continue to limit direct involvement in conservation management despite expanding community conservation programmes, habitat restoration and anti-poaching initiatives.

In the Blue Economy, most counties allocated less than one per cent of their budgets to the sector, limiting investments despite growing opportunities in fisheries and aquaculture.

Counties also reported gains in environmental management, climate action and water services.

During the 2025/26 financial year, counties collectively allocated approximately Sh7.6 billion to climate change  programmes and about Sh16 billion to water and sanitation projects, leading to the construction and rehabilitation of thousands of water supply facilities and improved access to safe water.

Abdullahi said devolution must ultimately be measured by improvements in the lives of citizens, urging governors to remain accountable in the use of public resources.

"Let us not leave our counties the same way we found them. Every shilling from the equitable share, own-source revenue and conditional grants must be accounted for through changed lives, improved livelihoods and prosperity of all Kenyans," he said.