Joint parliamentary mediation talks settle on Sh 415 Billion for counties » Capital News

NAIROBI, Kenya, June 18 – Senators’ ambitious push to have counties allocated KSh 465 billion in the current financial year has fallen, after mediation talks with the National Assembly settled on KSh 415 billion for the next fiscal cycle.

A joint mediation committee from both Houses had been deadlocked over the equitable share of revenue to counties for days. Senators had initially demanded KSh 465 billion, arguing the amount matched the devolved functions, while the National Assembly held firm on the National Treasury’s proposal of KSh 405 billion.

Senate Finance Committee Chair Ali Roba (Mandera) said further attempts to push beyond KSh 415 billion would risk paralyzing county operations due to prolonged stalemates.

“There has been consultation behind the scenes and it has dawned on the Senate that at 415 billion is the right position. Beyond that, it appeared to us like we were trying to build a storm. Finally, we have come to an agreement that we will settle the mediation,” stated Roba.

Talks began last Friday, with senators accusing MPs of lacking goodwill to adequately fund devolved services, especially in key sectors like health and agriculture.

On Tuesday, senators revised their offer to KSh 425 billion down from their initial KSh 465 billion while National Assembly members budged slightly, increasing their proposal by just KSh 500 million to KSh 410 billion.

Senators argued the lower allocation would disproportionately disadvantage counties already struggling under the current revenue-sharing formula. They maintained that sufficient funding was critical to uphold the spirit and success of devolution.

“There was justification from both sides. We respect that to bring that issue to conclusion right here and without wasting a lot of time. That is the mediated position so it is important that it is appropriately captured,” the Mandera Senator stated.

The agreement between the two Houses comes amid growing frustration from governors, who had demanded KSh 526 billion. They have threatened to withdraw from future negotiations on the Division of Revenue Bill (DORA), accusing the process of being predetermined and dismissive of devolution.

The Division of Revenue Bill, once enacted, becomes the Division of Revenue Act a key piece of legislation that outlines the equitable sharing of nationally raised revenue between the national and county governments each financial year.

According to the proposed DORA 2025, counties will receive KSh 405.1 billion in the 2025/26 financial year an increase of KSh 17.6 billion from the KSh 387.4 billion allocated in 2024/25.

Though county allocations have risen steadily from KSh 316.5 billion in 2020/21 to KSh 370 billion in both 2021/22 and 2022/23 governors insist the growth does not match the increasing cost of managing devolved functions.

This year, the Council of Governors proposed KSh 465 billion, the Commission on Revenue Allocation recommended KSh 417 billion, while the National Treasury maintained its KSh 405 billion stance.

Governors now say DORA consultations have become a mere formality, with county input routinely ignored despite the massive transfer of responsibilities from the national government.

“It will be pointless to attend such negotiations if the allocation for the 2025/2026 financial year is anything to go by,” said Council of Governors Chairperson and Wajir Governor FCPA Ahmed Abdullahi.

“As the Council of Governors (CoG), we had proposed Sh536 billion as the equitable share for counties. However, the National Treasury has proposed only Sh405 billion in its budget estimates,” he added.

Abdullahi noted that despite the transfer of over 200 functions costing over KSh 150 billion to counties, funding continues to fall short.

“It loses all meaning if the national government unilaterally decides county allocations. Our input must be meaningful, not ceremonial,” he said.