The National Assembly and the senate have reached a deal to allocate counties Sh428 billion in the 2026/2027 financial year, ending a protracted deadlock over the Division of Revenue Bill, 2026.
The agreement came after more than seven rounds of tense negotiations, during which senators reluctantly accepted the National Assembly’s final offer, despite maintaining that county governments required more resources.
The talks had narrowed to a Sh4 billion gap, with the senate lowering its demand from Sh432 billion and proposing a compromise of Sh430 billion. MPs, however, stood firm at Sh428 billion, arguing that the figure represented the highest amount the national government could sustainably provide within the available fiscal space.
Senators had pushed for additional county funding to support key devolved functions, including healthcare, agriculture, settlement of pending bills and service delivery at the grassroots.
Several senators expressed disappointment at the final outcome, noting that the senate had initially demanded Sh454.7 billion before gradually reducing the figure to Sh440 billion, Sh435 billion, Sh432 billion and eventually accepting Sh428 billion.
Co-chair, Mandera senator Ali Roba urged fellow senators to support the agreement, saying the negotiations had secured meaningful progress even though the final allocation fell short of the senate’s preferred figure.
Narok senator Ledama Olekina also backed the compromise, saying the decision should not be seen as a defeat but as a practical move to ensure counties receive funds on time.
Mombasa senator Mohammed Faki accepted the figure with reservations, arguing that counties remain financially constrained compared to the national government, which has greater room to borrow and mobilize resources.
On the National Assembly side, Budget and Appropriations Committee chairperson Samuel Atandi maintained that Sh428 billion was the highest sustainable allocation under the country’s current fiscal conditions. He cited competing national priorities, including funding for the judiciary, security, elections and other obligations under the proposed Sh4.8 trillion budget.
The agreement now clears the way for the passage of the Division of Revenue Bill, 2026, setting county allocations at Sh428 billion for the next financial year.
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