NAIROBI, Kenya — Counties will receive Sh70.6 billion in additional allocations for the 2025/26 financial year after Parliament struck a long-awaited compromise, ending months of wrangling between the National Assembly and the Senate.
The deal clears the final hurdle for the disbursement of funds that county governments have been banking on to ease cash-flow problems and revive stalled development projects.
The breakthrough came after senators agreed to adopt the National Assembly’s amendments to the County Governments Additional Allocation Bill, 2025, which details conditional and unconditional funding to counties beyond their equitable share.
The Senate had initially pushed for Sh93.5 billion in additional allocations, but MPs insisted on capping it at Sh70.6 billion, arguing that part of the contested funds — Sh23.6 billion from the Roads Maintenance Levy Fund (RMLF) — is still the subject of a court dispute over whether it should be managed by national or county governments.
“For the sake of the counties and service delivery to our people in the 47 counties, we agreed to consider the amendments proposed by the National Assembly,” said Nominated Senator Tabitha Mutinda, vice chairperson of the Senate Finance and Budget Committee. “In the next financial year, any deficiencies that will have been incurred will be dealt with then.”
The Senate’s approval unlocks the funds for all 47 counties for the financial year ending June 2026.
Counties Risk Losing Funds
However, at least 30 counties that have not rolled out the County Aggregation and Industrial Parks (CAIPs), and another five that have yet to complete construction of their headquarters, risk missing out on the additional allocations.
Under the new deal, counties with CAIPs already more than halfway complete will receive the balance of their allocations, while those yet to begin the projects will have to wait.
The five counties affected by the headquarters cut are Isiolo, Lamu, Nyandarua, Tana River, and Tharaka Nithi, which will now share Sh449 million — down from the Sh454 million earlier approved by the Senate.
“Instead of back and forth, we agreed that the balance will be factored in next year’s budget so that this matter comes to an end,” said Mutinda.
Meanwhile, the National Assembly increased allocations for two national development programmes:
- Kenya Devolution Support Programme, from Sh1.76 billion to Sh3.43 billion.
- Kenya Informal Settlement Improvement Project, from Sh1 billion to Sh2.5 billion.
Senators Divided on Compromise
Although most senators backed the deal to end the stalemate, several voiced frustration over what they called the National Assembly’s interference in county matters.
Machakos Senator Agnes Kavindu said the National Assembly “has no right to deduct monies allocated to counties,” urging MPs to respect the Senate’s constitutional mandate on devolution.
Nairobi Senator Edwin Sifuna accused the National Assembly of using intimidation tactics to push through its version of the Bill.
“The Senate should not yield to pressure,” he said, warning that the compromise had shortchanged counties.
Migori Senator Eddy Oketch defended the decision, saying the differences between the two Houses were “minimal” and should not delay service delivery.
“This is not a sign of giving up on the RMLF fight. We will still pursue the matter in court,” he said.
The Senate’s endorsement of the compromise now paves the way for Treasury to release the funds, providing long-awaited relief to county governments struggling with delayed disbursements and stalled projects.
