Devolve all major functions to state governments which are not currently devolved such as primary and secondary education, Class C roads, Urban roads and Class D to E roads. Disband the unnecessary parastatals and let federal/County takes its jurisdiction such as KWS and KFS amongst others.
Let the national government be in charge only of universities education,national security and national roads Class AB.
Well some would say education will fail amongst other essential services, but that is it .its price to pay and ran away from shift blaming. Some tribes think Kenya is not doing well because of Kikuyu Kalenjin matrix and thata the reason for political tensions in the country. Let these tribes be given to be responsible for their own affairs so that when it fails they have no one to blame but themselves. Even devolution though a bit limited clearly shows incompetent leaders as per ethnicities.
Federation works if you have extensive resources like US, UK, Germany, Australia, Malaysia etc or if you are a small influential country like Switzerland.
Imagine Nigeria has oil and is a Federation but wanavurugana daily.