Why MPs, Senate won't agree yet on counties' cash

The stalemate over the amount of money to be allocated to counties continues after the Senate insisted the devolved governments should get Sh443 billion while the National Assembly maintained they should get Sh425 billion as revenue share in the financial year 2026/2027.

The Senate and National Assembly Mediation Committee on the Division of Revenue Bill 2026, co-chaired by Mandera Senator Ali Roba and Alego Usonga MP Samuel Atandi, with 18 members drawn from both houses, did not reach an agreement as was anticipated on Monday.

The Senate had sought to have the counties allocated Sh454 billion, the National Assembly recommended Sh420 billion, the Council of Governors had proposed that counties be allocated Sh534.96 billion, while the Commission on Revenue Allocation recommended Sh458.94 billion as an equitable share.

"The figures pushed by the National Assembly are reflected 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. 

The Alego Usonga MP said initially the National Assembly was ready to push up the figure to Sh423 billion since they had identified areas to cut on the budget, while Mombasa Senator Mohammed Faki said the Sh3 billion is minimal and it is not even worth considering.

Faki said that the Senate had agreed to move down by Sh9 billion from the initial Sh454 billion, saying the Senate was ready to push to figure down to Sh445 billion, saying that their colleagues should agree to the figure to end the stalemate.

Narok Senator Ledama ole Kina said they need to be scientific in their reasoning, supporting the figure proposed by Senator Faki, saying they have already climbed down by Sh9 billion and that the counties need the money to be able to run their affairs.

"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," said Ledama. 

Atandi argued that there is no county that can claim that they need more money to work, but they are out to discharge a constitutional mandate to ensure counties get funds and after consultation, they felt Sh425 billion was sufficient for counties. 

Roba said that the notion that counties are not working, hence they should not get more funds, is far-fetched, with some doing very well, saying they should not use that avenue to criticise the National or County Governments. 

Kibwezi West MP Mwengi Mutuse said Counties got Sh387 billion in 2024/2025 and Sh415 billion in 2025/2026, which showed steady progress and that the figure that was being proposed by the National Assembly was fair enough.

"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 to Sh450 billion, but the war between the USA/Israel-Iran has harmed our economy," said Mutuse. 

Migori Senator Eddie Oketch said it is a constitutional requirement to resolve the crisis with an equitable share, supposed to be pegged on the last approved revenue, with the figure of Sh420 billion being proposed by the National Assembly pegged on revenue approved in 2022/2023. 

The Migori Senator said that the correct figure they should be talking about is Sh494 billion, which is a scientific figure, calling on his colleagues not to accept any figure below Sh445 billion and failure to do so, there are other constitutional mechanisms to explore. 

"Counties should not be reduced to employment bureaus with Elgeyo Marakwet, Lamu, Vihiga and Samburu Counties being some of those struggling to meet their development agendas, with the most funds they get going to recurrent expenditure," said Oketch.

Samburu Senator Steve Lelegwe called on the National Assembly to consider an increase of at least Sh20 billion, as it has happened previously, noting the increases in the last two financial years have been more than what is being suggested currently.

Nominated Senator Tabitha Mutinda called for an increase of at least Sh10 billion since there are projects and salaries to be paid, calling on their colleagues in the National Assembly to be considerate of the welfare of county employees.

Samburu West MP Naisula Lesuuda said at least they have moved up by Sh5 billion to increase the figure to Sh425 billion and that their Senate colleagues should accept the figure since there are some budgetary constraints in the country at the moment.

Kitutu Chache North MP Japheth Nyakundi said they have to live by the realities of the day, with Sh425 billion being fair enough and that the figure being proposed by the Senate would be considered in the next financial cycle.