Federalism would devolve graft. The DCI raids on KRA or customs at Port Mombasa come to mind. Counties have failed in health so I say take devolution slowly. Start with a workable transition system - like the rumored National Health Service or something. Taxation is not a joke - it is the backbone of the state after security. Would counties be allowed to determine VAT or PAYE besides council rates? It's a complex function. I see no challenge with KRA/CRA model provided the threshold is raised to 40% or so. It's federalism minus the tribal, religious or political risk of excess autonomy. And that still needs careful transition of more functions. NHS and such central bodies can be phased out with time.
Now, devolving all resources won't save us. It is a process same as democracy. Counties are incompetent and equally corrupt. You can't devolve everything to please Kikuyu or Kalenjin - you must have a central hold, cohesion, synergy and economies of scale. Global std is 40% in US, Germany, Canada, RSA, etc. No matter the % of revenue share the power duopoly in Nairobi needs to end. If you agree MP boundaries are equitable, you can equally see how one-man-one-vote is an unfair system. I mean even the US - literally the only successful democracy with direct vote - has an electoral college to reign majority dictatorship. California and New York are Kikuyu and Kalenjin. Populous states are diluted. 90% of the rest of the progressive countries are parliamentary.
The entitled Kikuyu will get over it. 1963 Kenya was parliamentary and federal but was rigged by greedy corrupt Jomo with Moi and Mboya's help. Atoning sins of the father would be Uhuru's greatest legacy. But the biggest losers will be Kalenjin whose population is accelerating as Gema dwindle. We have buttressed the pros and cons of the systems here and you were MIA. I also heard Jubilee had no opinion about BBI. It's not clear why their bedrocks' sudden bustle and bother. Let us go for the fairer, more accountable system.