MPs Reach Deal on Ksh 428 Billion County Revenue Allocation
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The Mediation Committee on the Division of Revenue Bill, 2026, broke a prolonged stalemate after it agreed to allocate Ksh 428 billion to county governments, ending a week of intense negotiations between the National Assembly and the Senate over equitable revenue sharing.
The committee reached a compromise after seven meetings.
It also reinstated Clause 5, which protects county allocations from sudden cuts caused by shortfalls in national revenue collections.
Co-chairperson and Budget and Appropriations Committee Chairperson Samuel Atandi said the agreement reflected consensus and national interest.
“We have settled on Ksh 428 billion. This is a constitutional imperative, and Kenyans are going to be happy,” said Atandi.
Mediation Committee Ends Revenue Sharing Deadlock
Senate Finance and Budget Committee Chairperson Sen. Ali Roba said the negotiations proved difficult but necessary for progress.
“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,” said Sen. Roba.
“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,” Ali Roba added.
He further urged counties to dedicate part of the allocation to clearing pending bills.
Members of Parliament and Senators welcomed the agreement and described it as a boost for devolution and fiscal stability.
“We have come to an agreement,” said Japheth Nyakundi.
Christopher Aseka supported the settlement and stressed the need for balanced funding between the two levels of government.
“This Ksh 428 billion is agreeable. We need our counties to run as well as national programmes and projects,” he said.
Also Read: Counties Set for Bigger Slice as Senate Proposes 49% Fuel Levy Allocation
Committee Restores Clause 5 on County Funds
Senator Ledama Olekina backed the deal and urged stronger safeguards to ensure counties receive full allocations.
“Let’s take this Kshs 428 billion. I am happy that we have agreed on Clause 5,” he said, while calling for stricter oversight of expenditure under Article 223 of the Constitution.
Senator Eddy Oketch welcomed the cooperation but emphasized accountability at the county level.
“I want to applaud the National Assembly for pushing us on accountability,” said Sen. Oketch.
“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 added.
Senator Mohammed Faki supported the agreement but called for attention to outstanding financial obligations affecting counties.
“This afternoon we have agreed on Ksh 428 billion, but we hope to receive conditional allocations and the deficit of the Equalisation Fund to ensure counties remain running,” said Sen. Faki.
Deal Moves to Parliament for Approval
Following the breakthrough, the National Assembly Budget and Appropriations Committee and the Senate Committee on Finance and Budget will table their reports in their respective Houses for consideration.
Lawmakers now expect a swift approval process to unlock the timely disbursement of funds to counties.
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Kenyan lawmakers celebrate inside Parliament Buildings in Nairobi on June 9, 2026 after the Mediation Committee reaches a landmark Ksh 428 billion revenue-sharing agreement for counties. PHOTO/ Parliament of Kenya