The Mediation Committee on the Division of Revenue Bill, 2025, has officially commenced its sittings, marking the beginning of efforts to resolve the ongoing impasse between the National Assembly and the Senate over the County Equitable Share for the 2025/26 financial year.
The committee was formed following a standoff between the two Houses after the National Assembly proposed an allocation of Ksh 405.1 billion, while the Senate amended the figure upwards to Ksh 465 billion — a revision that was subsequently rejected by the National Assembly.
Co-chaired by Samuel Atandi (Alego Usonga), chairperson of the National Assembly’s Budget and Appropriations Committee, and Senator Ali Roba (Mandera), chairperson of the Senate’s Finance and Budget Committee, the session began with both leaders defending the rationale behind their respective Houses’ proposed allocations.
During the deliberations, Sen. Boni Khalwale (Kakamega) underscored the importance of investing in counties as a means of sustaining national development.
“Kenya is ahead in development in the East African region. The only way to maintain that is to keep growing the economy of our counties by taking money to areas where production is being done,” said Sen. Khalwale.
How has counties used their allocations?
In contrast, George Kariuki (Ndia) expressed concern about the efficacy and transparency in the utilization of previous county allocations.
“I am yet to see any single project funded through the County Government. Let us give money that will be substantially used to raise the standards of living for Kenyans, not just to allocate funds. We need to feel the impact of the billions allocated to counties,” said Kariuki.
He also addressed the country’s constrained fiscal environment, emphasizing the need for prudent resource planning.
“The challenge we are facing as a country is resource mobilization. Overtaxing Kenyans is not possible. We must ask ourselves as leaders, what can we afford and what can’t we afford. Let us be realistic and work within our means as we urge the government to come up with ways of raising resources,” he added.
Sen. Eddy Oketch (Migori) supported increased funding for counties but stressed the need for accountability and proper transfer of devolved functions.
“We must be able to ensure that all functions of County Governments go to County Governments and hold them responsible to perform as required. Let us enforce a law that the National Treasury will not give us any budget without costing of functions under Schedule Four,” he proposed.
MPs calls for balance in sharing revenue to counties
Owen Baya (Kilifi North) urged for a balanced approach that supports devolution while acknowledging the nation’s economic limitations.
“As we mediate this, we need to ask ourselves what is possible based on the current economic performance. There is need to agree on a figure which we know we can allocate realistically. The Kshs. 18 billion increase from the previous financial year is quite sufficient,” said Baya.
In wrapping up the session, Sen. Roba encouraged both Houses to consult internally and prepare for the next round of discussions, citing the urgency posed by constitutional deadlines.
Atandi, on his part, urged the Senate to advocate for allocations that reflect the country’s current economic capacity.
