Counties to Receive Sh428 Billion as MPs, Senators Reach Deal on Revenue Sharing

County governments are set to receive Sh428 billion in equitable share allocation after the Mediation Committee on the Division of Revenue Bill, 2026 reached a consensus, ending a week of negotiations between the National Assembly and the Senate.

The agreement, reached after seven mediation sessions, also paved the way for the reinstatement of Clause 5, a provision intended to protect county allocations from arbitrary reductions arising from national revenue shortfalls.

Announcing the breakthrough, co-chairperson of the mediation committee and Chairperson of the National Assembly’s Budget and Appropriations Committee, Samuel Atandi, welcomed the compromise, saying it reflected the spirit of consensus and served the national interest.

“We have settled on Sh428 billion. This is a constitutional imperative and Kenyans are going to be happy,” Atandi said.

Senate Finance and Budget Committee Chairperson Ali Roba described the negotiations as challenging but necessary to ensure the smooth functioning of both levels of government.

“It has been a very difficult but cordial engagement with the objective of pushing the country forward. Mediation happens in one of the most difficult settings,” Roba said.

He emphasized the urgency of concluding the Division of Revenue Bill to facilitate the processing of the County Allocation of Revenue Bill and enable the timely release of funds to county governments.

“We need to finish processing the Division of Revenue Bill so that we can process the County Allocation of Revenue Bill and get the disbursement schedule on time to unlock funds for counties,” he added.

Roba also urged county governments to allocate part of the funds toward settling pending bills.

Lawmakers from both Houses hailed the agreement as a major win for devolution and fiscal responsibility.

Kitutu Chache North MP Japheth Nyakundi welcomed the deal, while Khwisero MP Christopher Aseka said the allocation strikes a balance between county and national government priorities.

“This Sh428 billion is agreeable. We need our counties to run as well as national programmes and projects,” Aseka said.

Narok Senator Ledama Olekina supported the settlement but challenged the National Assembly and the National Treasury to ensure counties receive the full amount agreed upon.

“Let’s take this Sh428 billion. I am happy that we have agreed on Clause 5,” Olekina said, while calling for stricter oversight of expenditure under Article 223 of the Constitution.

Homa Bay Senator Eddy Oketch praised the goodwill demonstrated during the negotiations but stressed the need for enhanced accountability at the county level.

“I want to applaud the National Assembly for pushing us on accountability. As much as we are fighting for funds to counties, we as the Senate need to hold county governors to account and prevent misappropriation,” he said.

Mombasa Senator Mohammed Faki said the agreement would provide stability for county governments but expressed hope that additional conditional allocations and outstanding Equalisation Fund arrears would also be addressed.

“This afternoon we have agreed on Sh428 billion, but we hope to receive conditional allocations and the deficit of the Equalisation Fund to ensure counties remain running,” Faki said.

Following the agreement, the National Assembly Budget and Appropriations Committee and the Senate Finance and Budget Committee are expected to table reports in their respective Houses for consideration and approval.