Parliament mediation team settles on Sh387bn for counties » Capital News

NAIROBI, Kenya, Nov 20 — Lawmarkers have reached an agreement on the revenue allocation for devolved units proposing Sh 387 billion for the Financial Year 2024/2025.

A Mediation Committee of the National Assembly and the Senate co-chaired by Kiharu MP Ndindi Nyoro and Senator Ali Roba (Mandera) increased the allocation by Sh2 billion compared to the previous Financial Year citing harsh economic times.

“We are facing reality as it is without sugarcoating.As much as we have willingness in terms if giving counties more funds. We have scarcity in terms of revenue shortfall,” the joint committee said.

“Out of our deliberation,the hard negotiations and zooming in on data,we have reinstated the last financial year allocation at Sh385 billion and added an additional Sh2 billion to make it Sh387 billion,” said Nyoro.

National Assembly had passed the Division of Revenue Bill 2024, approving a revenue share of Sh380 billion, aligning with the National Treasury’s proposal after the withdrawal of the Finance Bill 2024.

However, senators had remained firm, demanding the revenue allocation to counties be raised to Sh400 billion, arguing that counties cannot operate effectively with projected shortfalls.

The stalemate forced the constitution of a joint committee to mediate on the matter.

More to follow…

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