Senate, MPs clash over county cash as mediation talks begin
The mediation, involving 18 members drawn from both Houses, aims to bridge the gap and avoid delays in county funding for the new financial year starting July 1.
A joint mediation team from the Senate and National Assembly has begun talks to resolve a dispute over county revenue sharing, as pressure mounts to pass the Division of Revenue Bill, 2025.
During the first sitting on Friday, senators reluctantly scaled down their proposal from Sh465 billion to Sh435 billion, while the National Assembly made a minor increase from Sh405 billion to Sh408 billion.
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The mediation, involving 18 members drawn from both Houses, aims to bridge the gap and avoid delays in county funding for the new financial year starting July 1.
The negotiations exposed deep differences between the two Houses. Senate leaders insisted that counties are under increasing financial strain from national policies, while MPs maintained that the government must operate within its means.
Ali Roba, who co-chairs the committee with Samuel Atandi, said counties are now carrying costs that should be shared, including the housing levy, NSSF increases, health contributions, and stipends for community health promoters.
“These costs must be factored into the revenue share. Both levels of government stand to suffer if we don’t make progress,” he warned.
Senator William Kisang backed the higher allocation, stating that counties now cover more than Sh35 billion in mandatory national costs and need Sh465 billion to continue development.
However, the National Assembly argued that the economic situation demands realism. “Let’s make promises we know we can keep. We must consider how much we can realistically collect and deliver,” Atandi said.
Kilifi North MP Owen Baya said pushing up allocations without a solid revenue base would only worsen pending bills.
“The Sh18 billion increase from the previous fiscal year is already substantial,” he stated.
“Let’s be realistic and operate within our means, even as we push the government to find new ways of raising revenue,” Ndia MP George Kariuki added.
Despite the opposing positions, the committee agreed to work with the revised Sh435 billion Senate figure as a temporary middle ground. Talks will resume next Monday.
“We will hold internal consultations. There’s goodwill, especially from the Senate. But we need to conclude soon due to other looming constitutional deadlines,” Roba said.
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