Senators and MPs on Wednesday agreed to allocate Sh415 billion to counties as equitable share of revenue in the next financial year starting July, ending a stalemate that had threatened to delay the release of the funds.
This represents an increase of Sh27.6 billion from the current financial year’s allocation of Sh387.4 billion.
In a mediation meeting that barely lasted 20 minutes, the MPs dropped their hardline positions and collectively agreed to let county governments receive Sh415 billion in the financial year ending June 30, 2026.
The development brought to an end four days of intense negotiations that began with senators demanding for Sh465 billion to be taken to counties, while MPs maintained that only Sh405.1 billion is available for the 47 devolved units. The situation led to the formation of an 18-member mediation committee to resolve the crisis.
As of Tuesday, the two parties were still in disagreement over how much money should be allocated to counties with senators holding out for Sh425 billion while the MPs’ figure stood at Sh410 billion. But the white smoke billowed from the third floor in Bunge Towers on Wednesday when the mediation committee unanimously adopted the Sh415 billion that was proposed by Aldai MP Marianne Kitany and seconded by Mombasa Senator Mohamed Faki. The Sh415 billion figure was arrived at after wide consultation before the proposal was put before the committee for adoption.
The development means that senators had to concede Sh50 billion while the National Treasury will now be forced to look for ways of getting Sh10 billion more from their budget of Sh405 billion read by Cabinet Secretary John Mbadi on Thursday last week as funds to counties.
“We have agreed to allocate Counties Sh415 billion for the financial year ending June 2026, which is a mediated position for both Houses. This now puts this matter to rest,” said Alego Usonga MP Samuel Atandi, the mediation committee co-chair.
Mandera Senator Ali Roba, the other co-chair, said senators agreed to the Sh415 billion so as not to paralyse activities in counties starting next month. He called on governors to ensure prudent use of the funds so that senators have a reason to champion for more funds next year.
“We are now calling on all the 47 governors to make sure that they make good use of the funds that have been allocated to counties since we cannot accept the embezzlement of these funds, which we have lobbied hard to be increased,” said Mr Roba.
The figure is, however, way below the Sh536 billion demanded by governors as equitable share of revenue and Commission on Revenue Allocation’s proposal of Sh417 billion.
The Senate was represented by Mr Roba, Mr Faki (Mombasa), Boni Khalwale (Kakamega), William Kisang’ (Elgeyo Marakwet), Danson Mungatana (Tana River), Eddy Oketch (Migori), Richard Onyonka (Kisii), Daniel Maanzo (Makueni) and Tabitha Mutinda (nominated).
The National Assembly was represented by Mr Atandi, Ms Kitany (Aldai), Owen Baya (Kilifi North), Robert Pukose (Endebess), George Kariuki (Ndia), Christopher Aseka (Khwisero), Leah Sankaire (Kajiado County MP), Naisula Lesuuda (Samburu East) and Zamzam Mohamed (Mombasa Woman Representative).
On Tuesday, senators accused their counterparts of not negotiating in good faith, insisting they will not go below Sh425 billion.
Senator Khalwale had urged MPs to adopt the spirit of give and take so that counties are able to perform their functions optimally. He argued that failing to give counties adequate funds will make some of them lag behind in development.
“There are counties that do not have anything for development. A county like Vihiga, the governor cannot speak because he has nothing to show in terms of development because of the little money the county gets,” said the Senate Majority Whip.
He called for the reduction of the budget allocated to health, agriculture and housing in the national government as the functions are devolved. “We are begging our colleagues in the National Assembly to think about the welfare of 12 counties that are not able to carry out any developments because the money they are allocated mostly goes to recurrent expenditure,” said Mr Khalwale.
Senator Mungatana warned that the stalemate was likely to paralyse activities in counties, saying service delivery to the citizens should be the priority.
Senator Kisang’ said the agitation for more funds for counties stems from the Senate embracing an element of affirmative action to benefit 12 small counties not able to carry out major development because of the little allocations they receive.
