Mediation talks to resolve County revenue dispute commences between both Houses

The mediation committee on the Division of Revenue Bill, 2025, has officially begun its sittings to address the stalemate between the National Assembly and the Senate over the county equitable share for the 2025/26 financial year.

The impasse arose after the National Assembly proposed Sh405.1 billion for the county's equitable share, a figure the Senate amended to Sh465 billion.

The MPs, however, rejected it.

Co-chaired by National Assembly's Budget and Appropriations Committee Sam Atandi and Senate's Finance and Budget Committee Ali Roba, the session began with both leaders defending the rationale behind their respective Houses' proposed allocations.

During the deliberations, Kakamega Boni Khalwale 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 Khalwale.

Ndia MP George Kariuki, however, expressed concern about the efficacy and transparency in the utilisation 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," Kariuki said.

He added: "We need to feel the impact of the billions allocated to counties."

The legislator also addressed the country’s constrained fiscal environment, emphasising the need for prudent resource planning.

He said the challenge the country is facing is resource mobilisation.

"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 argued.

Migori Senator Eddy Oketch supported increased funding for counties but stressed the need for accountability and proper transfer of devolved functions.

Oketch stressed the need to ensure that all functions of county governments are transfered and hold the governors responsible for performing as required.

"Let us enforce a law that the National Treasury will not give us any budget without the costing of functions under Schedule Four,” he proposed.

Kilifi North MP Owen Baya 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," said Baya.

"There is a need to agree on a figure which we know we can allocate realistically. The Sh18 billion increase from the previous financial year is quite sufficient."

In wrapping up the session, 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.