Stalemate persists between MPs and Senators over equitable share allocation to counties
Members of Parliament (MPs) and Senators have yet again failed to reach an agreement regarding the amount that should be allocated to counties in the 2025/2026 Financial Year.
In its third meeting on Tuesday, June 17, 2025, the Mediation Committee on the Division of Revenue Bill 2025 was unable to strike a balance on the amounts proposed by both sides.
The sitting saw the Senate lower its demand from Ksh427 billion to Ksh425 billion, while the National Assembly held firm at Ksh410 billion.
The committee co-chair and Alego Usonga MP Samuel Atandi reiterated the National Assembly’s position, stating that the House can only commit to an allocation of Ksh410 billion, citing economic realities that limit fiscal flexibility.
“Out of the Ksh2.7 trillion revenue that is projected to be realised in the coming financial year, Ksh1.1 trillion will be used to pay interest on debts,” Atandi explained.
“I just want to remind you, even as you insist on advancing your figures upwards, you look at the fiscal space left. That is why you realise that from our side, climbing up is very, very difficult.”
However, the senators, led by their co-chair and Mandera Senator Ali Roba, want a higher allocation, arguing that counties have seen minimal increases in revenue share over the years despite growing needs and inflationary pressures.
“There is a bit of goodwill that has been shown by both sides in the reality of the circumstances, and we need to find convergence as quickly as possible,” Roba said.
“We should do that within the context of the fact that revenues to county governments have not been growing for the last six years as much. It’s only one year when we moved from Ksh316 billion to Ksh370 billion.”
Kakamega Senator Boni Khalwale added that any shortfall in actual revenue collection should be absorbed by the national government, not the counties.
“We want our counties now to take off. We have managed debt. The President has spoken as much that the indicators of a performing economy are on the upward trajectory, and therefore I want to affirm my collection of the Senate that we remain at Ksh427 billion,” he said.
“Let the National Assembly listen to us and come up. If they refuse to come up, the Constitution is live. It will speak.”
A similar position was supported by Endebess MP Robert Pukose, who held that counties should not suffer due to revenue shortfalls.
“I agree with Senator Khalwale that once the Division of Revenue is passed and we have a shortfall in revenue, then the national government bears the responsibility and that means it bears it through the supplementary budget, but the counties will not bear that responsibility,” Pukose said.
“But what happens is that if we pass a figure that is unrealistic, we end up with the counties having pending bills because the exchequer is not able to release money to the counties.”
Senators maintained that revenue raised nationally should be shared equitably among the national and county governments as envisaged in the Constitution.
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Francis Muli
Francis Muli is a passionate digital journalist with over seven years of experience in crafting compelling stories across various platforms. His major focus is in business, politics and current affairs. He brings a keen eye for detail and a commitment to uncovering the truth. He has contributed to leading publications across the country. When not chasing stories, you can find Muli exploring new technologies, attending local events, or reading fiction. Connect with Francis Muli on X @FMuliKE and Facebook (Francis Muli) to follow his latest stories and insights.
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