Deal at last! MPs, senators agree to allocate counties Sh428 billion

The Senate and National Assembly Mediation Committee has finally reached a compromise to allocate Sh428 billion to the counties as equitable share of revenue for the 2026/27 financial year after the 18-member team held seven marathon meetings since last Friday.

The team reached a deadlock on Monday evening with the Senate insisting on Sh440 billion while the National Assembly maintained that counties should receive Sh425 billion, leading to an adjournment of the meeting.

Co-chaired by Mandera Senator Ali Roba and Alego Usonga MP Samuel Atandi, the mediation committee on the Division of Revenue Bill, 2026, called on members to support the Sh428 billion allocation for devolution to function effectively.

The Senate had sought to have counties allocated Sh454 billion, while the MPs recommended Sh420 billion. The Council of Governors had proposed Sh534.96 billion, while the Commission on Revenue Allocation recommended Sh458.94 billion.

“I am extremely relieved that the members of our teams have agreed to the Sh428 billion allocation, which we will defend on the floor of both Houses to ensure county governments carry out their activities effectively,” said Atandi, who is also the National Assembly’s Budget and Appropriations Committee chair.

He said the two sides had also agreed to minimise supplementary estimates from the National Treasury that disrupt budget processes, a concern that had been raised by senators.

Roba, who is also the chairman of the Senate Finance and Budget Committee, said their objective was to ensure both the national and county governments discharge their mandates effectively, which is why the Senate moved from its initial proposal of Sh454 billion.

Members of both teams held tough negotiations from Friday, taking several breaks to consult before eventually settling on the figure.

“I would like to request my colleagues in the Senate to accept the Sh428 billion figure agreed upon with our counterparts in the National Assembly to end the stalemate,” said Roba.

Migori Senator Eddy Oketch maintained a firm stance, arguing that because the gap between what the MPs and senators were pushing for had narrowed to only Sh4 billion, the two sides should have converged at Sh430 billion. “We have held seven meetings and, in the spirit of concluding this mediation, let us agree on Sh430 billion.”

Kibwezi West MP Mwengi Mutuse said the national budget was under pressure from election preparations and lawmakers would not want allocations to the Independent Electoral and Boundaries Commission or the security affected.

Nominated Senator Tabitha Mutinda described the talks as tough negotiations, saying the compromise was reached in the best interest of devolution. She hoped their colleagues would support them.

Samburu West MP Naisula Lesuuda said leaders rely on services delivered by counties and the committee had sought the best possible balance to ensure counties receive sufficient funding. 

Narok Senator Ledama ole Kina said counties cannot spend money they do not have, unlike the national government, which can increase spending through supplementary budgets. He said agreeing to Sh428 billion should not be viewed as a defeat for the Senate but as a compromise for the benefit of the counties. “We would like guarantees that counties will receive the Sh428 billion. In the past, delays in the disbursement of funds have affected service delivery in counties.”

Mombasa Senator Mohammed Faki argued that the National Treasury should operate as an independent institution and suggested adjournment until Wednesday, when the National Assembly delegation might reconsider the Senate’s proposal of Sh430 billion.

Atandi said legislators had a constitutional duty to allocate available resources fairly. Following consultations, he said, the committee concluded that Sh428 billion was sufficient.

Roba dismissed proposal that counties were underperforming and that they didn’t deserve additional funding.

Oketch said the Constitution requires equitable revenue-sharing disputes to be resolved using the most recently approved revenue figures, adding that the Sh420 billion initially proposed by the National Assembly was based on outdated revenue projections. He said the scientifically derived figure should actually be Sh494 billion.