Revenue sharing mediation committee co-chair Senator Ali Roba (Mandera)/HANDOUTA standoff between the Senate and the National Assembly could see counties lose billions of shillings in equitable share of revenue, potentially stalling critical devolved services and development projects.
Tensions flared as senators accused their National Assembly counterparts of acting as proxies for the national government, which they claim is increasingly centralising funds meant for devolved functions.
On the second day of mediation talks, senators made a major concession, slashing their initial proposal from Sh465 billion to Sh428 billion in the 2025/2026 Financial Year.
On the other hand, Members of the National Assembly marginally increased their proposed figure from Sh405.1 billion to Sh409.5 billion, amounting to a modest Sh4 billion uptick—far below the Sh37 billion the Senate has already surrendered.
The stalemate is playing out within an 18-member mediation committee co-chaired by Senator Ali Roba (Mandera) and MP Samuel Atandi (Alego Usonga), comprising nine members from each House.
“We must be alive to the fact that all legislation passed in Parliament can still be challenged in court,” warned Roba, who emphasised that counties are now absorbing significant non-discretionary costs introduced by national policies—including deductions for the Affordable Housing Levy, National Social Security Fund (NSSF), Social Health Authority (SHA), and Community Health Promoter stipends.
Senator William Kisang (Elgeyo Marakwet) criticised the National Assembly's stance: “If we do not allocate more money to counties, smaller counties will continue to pay salaries without any meaningful development.”
Senator Richard Onyonka (Kisii) expressed frustration with accusations of misuse of county funds.
“There has been this notion that if counties are given more money, the money will be stolen. If the money is being stolen at the national government, let it also be stolen at the county governments,” he said bluntly.
Members of the National Assembly, including Owen Baya (Kilifi North) and Maryanne Kitany (Aldai), defended their position, arguing the country’s tight fiscal space cannot accommodate any increase beyond the proposed Sh409.5 billion.
Despite the disagreements, both co-chairs signaled hope for compromise.
The team provisionally leaned toward the Senate’s reduced proposal of Sh428 billion, with plans to consult internally before reconvening this afternoon to try and finalize the figure.
“There’s goodwill, especially from the Senate,” Roba said. “But we need to conclude soon due to looming constitutional deadlines.”
Atandi echoed the sentiment, saying he expects “significant”
progress in the next sitting.
The mediation process began on Friday, aiming to fast-track the passage of the Division of Revenue Bill, 2025, a crucial step to ensure timely funding of counties starting July 1.
