The Mediation Committee considering the Division of Revenue Bill, 2026, has made notable progress toward resolving differences over the equitable share of revenue to county governments, signaling growing consensus on the fiscal framework guiding devolved funding.
The joint sitting, co-chaired by National Assembly Budget and Appropriations Committee Chair Hon. Samuel Atandi and Senate Finance and Budget Committee Chair Sen. Ali Roba, noted what members described as tangible goodwill as both Houses moved closer to a compromise on county allocations.
The meeting reviewed a Senate amendment to Clause 5 of the Bill, which seeks to protect counties from abrupt budget cuts in the event of revenue shortfalls.
“The purpose of Clause 5 is to insulate counties from arbitrary expenditure cuts due to revenue shortfalls. This clause is critical as it gives effect to Article 219 of the Constitution,” Sen. Ali Roba said, adding that county governments remain constrained due to limited borrowing flexibility compared to the national government.
Hon. Atandi confirmed that the National Assembly had agreed to reinstate the clause following consultations with the National Treasury.
“We are here to undertake a constitutional responsibility. The economy at this time is not capable of raising sufficient revenue to meet all the competing demands. We must be realistic and factual,” he said.
Sen. Tabitha Mutinda welcomed the emerging agreement on Clause 5, describing it as a key step toward strengthening predictability and stability in county budgeting.
On the key fiscal figure, the two Houses have gradually narrowed their positions, from an initial Sh420 billion proposal by the National Assembly and Sh450 billion by the Senate.
Hon. Atandi indicated that the National Assembly had adjusted its position upward to Sh425 billion.
“We have moved from Sh420 billion to Sh425 billion on our side. We believe this is factual and realistic given the revenue environment,” he said.
Sen. Roba, however, maintained that counties require a stronger allocation, proposing Sh440 billion as a balanced compromise while noting that both sides had already demonstrated flexibility.
Sen. Ledama Olekina supported the Sh440 billion proposal, saying it would still be consistent with the need to sustain devolution.
“The counties will smile at Sh440 billion. We are aware of the economic situation, but we must still support devolution,” he said.
Sen. Eddy Oketch also pushed for increased funding, arguing that a technical assessment places the optimal allocation at approximately Sh445 billion, citing stalled development projects and pending obligations, including arrears in the Equalisation Fund.
In their closing remarks, the co-chairs Hon. Atandi and Sen. Roba acknowledged the progress made and agreed to adjourn the sitting to allow further consultations.
“We have made significant progress from Sh450 billion to Sh440 billion and from Sh420 billion to Sh425 billion. We adjourn and reconvene tomorrow at 1.00 p.m. Whatever we agree here must pass both Houses,” Sen. Roba said.
The committee said it remains optimistic that continued consultations will yield consensus ahead of the enactment of the Division of Revenue Bill, 2026, ensuring uninterrupted funding for county governments and national programmes.
Email your news TIPS to Editor@Kahawatungu.com — this is our only official communication channel
