A fresh confrontation has emerged between Kenya’s bicameral legislature over county financing after the National Assembly rejected the Senate’s proposal to increase the counties’ equitable share of revenue to KSh 465 billion in the 2025/26 fiscal year.
The National Assembly maintained its earlier position of KSh 405 billion, citing fiscal constraints and warning against overextending the country’s limited financial capacity.
This decision now triggers a constitutional mediation process under Article 113, as the two Houses of Parliament fail to agree on the Division of Revenue Bill.
The Senate, led by Finance Committee Vice Chair Tabitha Mutinda, had argued for the KSh 60 billion increase, saying it would cushion counties against rising non-discretionary expenditures such as the Housing Levy, NSSF contributions, industrial parks, community health worker stipends, and wage increments.
However, Majority Leader Kimani Ichung’wah countered that the increase was “fiscally irresponsible,” while Bumula MP Jack Wamboka warned the nation cannot afford to “expand spending in abnormal economic conditions.”
Speaker Moses Wetang’ula defended the lower figure, saying it included a KSh 17.6 billion bump from last year and aligned with the Treasury’s fiscal consolidation plan aimed at reducing the budget deficit to 4.3% of GDP.
He pointed to public debt, global disruptions, and tight revenue space as key constraints.
The Senate, however, remains adamant that counties are under strain and need more funding to deliver services effectively.
Senate Majority Leader Aaron Cheruiyot lamented that many counties spend over 50% of revenue on salaries, calling for financial reforms even as Boni Khalwale demanded fairness across regions, warning of marginalisation.
The joint mediation committee now faces the uphill task of bridging the KSh 60 billion gap. Whether counties will get more funds—or the stalemate stalls budget timelines—remains to be seen.
