The Senate and the National Assembly have, for the third time, failed to agree on equitable revenue sharing for county governments in the 2025-26 financial year, with both houses maintaining hardline stances during ongoing mediation.

During the June 17, 2025, negotiations, senators reduced their proposal from Ksh428 billion to Ksh425 billion, while National Assembly members increased theirs marginally from Ksh409.5 billion to Ksh410 billion – a difference of only Ksh1 billion.

Senators Ali Roba (Mandera), Danson Mungatana (Tana River), Boni Khalwale (Kakamega), Eddy Oketch (Migori), Mohamed Faki (Mombasa), and Tabitha Mutinda (nominated) accused their counterparts of negotiating in bad faith and insisted they would not go below Ksh425 billion.

“We have consulted amongst ourselves as senators, and it is our view that we reduce further by Ksh2 billion to arrive at Ksh425 billion,” Mungatana said.

Inadequate funding

Khalwale warned that inadequate funding would hamper county development: “Counties should get Ksh425 billion. There are counties that do not have anything for development. A county like Vihiga has five constituencies using CDF money, but the governor has nothing to do.”

National Assembly members Owen Baya (Kilifi North), Marianne Kitany (Aldai), Robert Pukose (Endebes), and George Kariuki (Ndia) maintained that the economy cannot sustain Ksh425 billion.

“There is Ksh13 billion that has been allocated for primary healthcare, which basically will go to the counties. We want to persuade our colleagues to accept the Ksh410 billion, given that there are other allocations still going to counties,” said Pukose.

The 18-member mediation committee, co-chaired by Roba and Samuel Atandi (Alego Usonga), will reconvene on Thursday, June 19, 2025, seeking final consensus on the Division of Revenue Bill, 2025.

The team held its first sitting on Friday, aiming to fast-track the passage of the bill and facilitate the timely disbursement of money to counties for the financial year that starts on July 1, 2025.

Roba stressed that counties are burdened with non-discretionary expenditures triggered by national policies, such as the affordable housing levy, increased NSSF deductions, contributions to the Social Health Authority (SHA), and stipends for community health promoters.