Sh50.5 billion in limbo as Senate, National Assembly fail to agree on county funds
With the financial year fast approaching its end, county governments remain in limbo, uncertain whether they will receive the much-needed funds to support development projects and essential services.
Counties are on the verge of losing up to Sh50.5 billion in conditional additional allocations due to a standoff between the Senate and the National Assembly over the County Additional Allocation Bill, 2025.
The dispute raises concern over the timely disbursement of funds needed for crucial development projects and essential services, with only three months left before the financial year ends on June 30.
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While both Houses have agreed to exclude the contentious Road Maintenance Levy Fund (RMLF) from the County Additional Allocation Bill (CAAB), 2025, pending a court ruling, they remain deeply divided on the total conditional allocations.
The National Assembly approved Sh25.3 billion, whereas the Senate raised the figure to Sh50.5 billion, resulting in a discrepancy of over Sh25.2 billion.
Senators are pushing for Sh35.65 billion to be disbursed to counties as conditional additional allocations from development partners, while MPs have capped the amount at Sh17.36 billion.
A further disparity arises in the allocation for county aggregation and industrial parks (CAIP), where senators propose Sh2 billion, compared to MPs’ figure of Sh2.85 billion. The Sh523.1 million difference represents funds that senators have set aside for completing county headquarters in Lamu, Isiolo, Tana River, Tharaka Nithi and Nyandarua — funds that MPs have instead redirected to the CAIP.
On conditional additional allocations from the national government’s share of revenue, senators have proposed Sh7.54 billion, while MPs have earmarked Sh7.84 billion.
However, both Houses agree on allocating Sh3.23 billion to community health promoters, Sh1.759 billion for county health workers’ salary arrears, and Sh116 million for court fines.
The Senate, which held a special sitting last Thursday to pass the CAAB, 2025, has accused the National Assembly of stifling devolution.
Narok Senator and Senate Minority Whip Ledama Olekina described the situation as a crisis, warning that counties will suffer due to the prolonged deadlock.
“We have a serious problem. This is a crisis. Right now, our counties will not be receiving the money because of the bickering between the two Houses,” he said.
Meru Senator Kathuri Murungi criticised the National Assembly for what he termed as deliberate efforts to derail devolution.
“Even if a common ground is found, the disbursement will happen too late in the financial year, denying counties the opportunity to utilise the funds effectively,” he said.
Kitui Senator Enoch Wambua echoed similar sentiments, saying, “Let it go on record that the greatest enemy of devolution is the National Assembly. The best way to kill counties is to deny them funds.”
Kakamega Senator Boni Khalwale, a member of the Senate Finance and Budget Committee, defended the Senate’s decision to omit the RMLF allocation of Sh10.5 billion, citing the ongoing court case.
“We removed from the Bill any mention of that RMLF until the courts have made a decision because of sub judice,” he said.
Both Houses are currently in recess until next month, further delaying any resolution to the dispute.
With the financial year fast approaching its end, county governments remain in limbo, uncertain whether they will receive the much-needed funds to support development projects and essential services.
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