A dispute over the amount of money to be allocated to county governments in the 2026/27 financial year remained unresolved on Monday after the Senate and National Assembly failed to agree on a revenue-sharing formula.
Members of the mediation committee formed to reconcile differences on the Division of Revenue Bill 2026 ended their meeting without a breakthrough, leaving a Sh18 billion gap.
The Senate is pushing for counties to receive Sh443 billion, while the National Assembly is standing by its proposal of Sh425 billion.
The mediation committee, co-chaired by Mandera Senator Ali Roba and Alego Usonga MP Samuel Atandi, comprises 18 members drawn from both Houses.
The disagreement follows earlier proposals by various stakeholders. The Senate had initially sought Sh454 billion for counties, the National Assembly proposed Sh420 billion, the Council of Governors recommended Sh534.96 billion, while the Commission on Revenue Allocation suggested Sh458.94 billion.
Defending the National Assembly’s position, Atandi said the proposed allocation reflects the country’s current economic realities.
“The figures pushed by the National Assembly reflect by the realities on the ground, that is why we are asking our colleagues in the Senate to accept Sh425 billion and climb down from the Sh443 billion they are proposing so that we can move forward,” said Atandi.
He noted that the National Assembly had initially considered raising its proposal to Sh423 billion after identifying possible budget cuts before eventually settling on Sh425 billion.
However, Mombasa Senator Mohammed Faki argued that the remaining difference was relatively small and should not stand in the way of an agreement.
Faki said the Senate had already reduced its demand from Sh454 billion and was willing to lower it further.
“The Senate was ready to push the figure down to Sh445 billion,” he said, urging MPs to support the proposal and bring the impasse to an end.
Narok Senator Ledama ole Kina backed the Senate’s position, saying counties require additional resources to clear pending bills and effectively deliver services.
“For the counties to survive, they need to clear pending bills. My request to the National Assembly is to agree to Sh445 billion which is reasonable enough. As the Senate, I do not think we can go down any further,” he said.
On the other hand, Atandi maintained that while counties will always seek more funding, Parliament had a constitutional responsibility to balance competing national priorities and has concluded that Sh425 billion was adequate.
Roba dismissed claims that counties do not deserve increased funding because of poor performance, saying several devolved units were delivering tangible results and should not be unfairly criticised.
Kibwezi West MP Mwengi Mutuse supported the National Assembly’s proposal, noting that county allocations have steadily increased in recent years.
“I would like to plead with my colleagues in the Senate that let us not argue for the sake of optics. We all wished for the figure to rise up to Sh450 billion but the war between the US/Israel-Iran has had a negative impact on our economy,” said Mutuse.
Migori Senator Eddie Oketch insisted that constitutional provisions require county allocations to be based on the most recently approved revenue figures.
He argued that counties should receive at least Sh445 billion and warned that the Senate could explore other constitutional options if the stalemate persists.
Other senators,Steve Lelegwe and Tabitha Mutinda, called for a higher allocation to enable counties to fund development projects and meet salary obligations.
Meanwhile, Samburu West MP Naisula Lesuuda and Kitutu Chache North MP Japheth Nyakundi defended the National Assembly’s position, citing prevailing fiscal constraints and the need for prudent budget management.
The mediation committee is expected to continue negotiations in a bid to reach a compromise and avert delays in the approval of the Division of Revenue Bill.
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