NAIROBI, Kenya – A fresh impasse has erupted between the National Assembly and the Senate over the equitable share of revenue to counties, following the National Assembly’s rejection of proposed Senate amendments to the Division of Revenue Bill, 2025.
The Senate had sought to amend the Bill to increase the county allocation by Ksh 60 billion from the National Assembly’s approved figure of Ksh 405 billion to Ksh 465 billion.
The National Assembly’s decision now paves the way for a mediation process between the two Houses, a negotiation phase that has historically been protracted.
Senate Finance and Budget Committee Vice Chairperson Tabitha Mutinda defended the proposed increase, citing a growing burden of non-discretionary expenditures forced on counties by national government directives.
These include Ksh 4.1 billion for the Housing Levy, Ksh 6 billion for National Social Security Fund (NSSF) contributions, Ksh 11.8 billion for County Aggregated Industrial Parks, and Ksh 3.23 billion for payments to community health promoters.
Additional obligations include Ksh 6.3 billion for IPPD annual wage increments and Ksh 3.5 billion for doctors’ salaries under the 2017 CBA and return-to-work agreements.
The National Assembly dismissed the Senate’s proposal, citing limited fiscal space.
The move triggered constitutional mediation under Article 113, as both chambers seek consensus on the revenue allocation for the 2025/26 financial year.
Majority Leader Kimani Ichung’wah, while moving the motion to reject the amendments, warned that exceeding the initially approved allocation would stretch the country’s finances beyond sustainable limits.
“The Bill as approved by the House had about Ksh 405 billion, but the other House has since amended that and proposed that we increase that to about Ksh 465 billion, that is Ksh 60 billion above what is agreed,” Ichung’wah stated.
“Bearing in mind the fiscal space that we have, it may not be practical to increase by Ksh 60 billion… It is only fair that we reject this amendment to allow us to go into early mediation,” he added.
Bumula MP Jack Wamboka seconded the motion, arguing that the proposed increase was unsustainable given the current state of the economy.
“I beg to second, bearing in mind the fiscal space the country is operating in. It is only abnormal for anyone to think we should be increasing these monies upwards,” Wamboka said.
The Senate had made a strong case for more funds, noting counties are under increasing pressure due to delayed disbursements and escalating operational costs.
Senators voted to push the Treasury to allocate Ksh 460 billion to the counties to sustain devolved functions.
Senate Majority Leader Aaron Cheruiyot expressed concern over the financial sustainability of county governments, highlighting that 34 out of 47 counties spend more than half of their revenues on recurrent expenditures.
“It makes no sense to fight for Sh400 billion or Sh450 billion for counties when 90% of that money is misappropriated. Why should we send that much if over half of it is used to pay 300,000 to 400,000 people, excluding millions of others?” he posed.
In a communication accompanying the Bill, National Assembly Speaker Moses Wetang’ula defended the Ksh 405 billion allocation, arguing it was informed by current revenue trends and an increase of Ksh 17.6 billion from the previous fiscal year.
He added that the figure was aligned with the government’s broader fiscal consolidation plan aimed at reducing the deficit to 4.3 percent of GDP.
“This figure was guided by the government’s commitment to a fiscal consolidation plan aimed at reducing the fiscal deficit to 4.3 per cent of GDP. This is intended to slow the accumulation of public debt, improve the primary surplus, and enhance fiscal sustainability,” said Wetang’ula.
Senate Chief Whip Boni Khalwale backed the Senate’s proposal, arguing that both county and national allocations should reflect equitable development across all regions.
“The national government must ensure equity across all eight regions. We are tired of seeing one region 100 years ahead of another. This is because no one from that region has become President or Prime Minister,” said Khalwale.
“All 290 sub-counties and 47 counties must develop at the same pace. President William Ruto and his Cabinet must hear the people of Western Kenya clearly we campaigned for him, we support him, and we want to succeed, so the country can succeed,” he added.
The National Treasury has repeatedly cautioned that the government is under significant fiscal pressure, citing ballooning public debt, limited revenue growth, and competing national priorities.
