The mediation committee handling the Division of Revenue Bill, 2026, has resolved a week-long standoff between the National Assembly and the Senate after agreeing to allocate Ksh428 billion as the equitable share of national revenue to county governments.

The breakthrough, reached after seven rounds of negotiations, also saw the reinstatement of Clause 5, a provision designed to shield county allocations from arbitrary reductions in the event of national revenue shortfalls.

Announcing the agreement at Parliament Buildings on Tuesday, June 9, 2026, co-chairperson of the mediation committee and Chairperson of the National Assembly’s Budget and Appropriations Committee, Samuel Atandi, said the compromise reflected the spirit of consensus and adherence to constitutional requirements.

“We have settled on Ksh 428 billion. This is a constitutional imperative, and Kenyans are going to be happy,” said Hon. Atandi.

Senate Finance and Budget Committee Chairperson Sen. Ali Roba described the negotiations as difficult but necessary.

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

“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.”

Welcoming the agreement

Lawmakers from both Houses welcomed the agreement, terming it a major win for devolution and prudent fiscal management.

Japheth Nyakundi hailed the consensus, while Christopher Aseka said the agreed amount would support both county operations and national development programmes.

“This Ksh428 billion is agreeable. We need our counties to run as well as national programmes and projects,” Aseka said.

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

“Let’s take this Ksh428 billion. I am happy that we have agreed on Clause 5,” said Olekina, who also called for enhanced oversight of expenditure under Article 223 of the Constitution.

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

“This afternoon we have agreed on Kshs 428 billion, but we hope to receive conditional allocations and the deficit of the Equalisation Fund to ensure counties remain running,” Sen. Faki said.