Nine MPs to join mediation committee to resolve revenue division Bill impasse

National Assembly Speaker Moses Wetang'ula has appointed nine Members of Parliament to serve on a mediation committee for the Division of Revenue (Amendment) Bill, 2024.

This decision comes after the National Assembly on October 16, 2024, rejected Senate amendments to the Bill.

"As you are aware, on Wednesday, 16th October 2024, the House rejected the Motion on consideration of the Senate amendments to the Division of Revenue (Amendment) Bill, 2024, essentially committing the Bill to mediation in accordance with Article 112 of the Constitution and Standing Order 149," Wetang'ula said on Friday.

Speaker Wetang'ula appointed Ndindi Nyoro (Kiharu), Mary Emaase (Teso South), John Chikati (Tongaren), David Ochieng (Ugenya), David Kiplagat (Soy), Otiende Amollo (Rarieda) Fatuma Jehow (Wajir), Makali Mulu (Kitui Central) and Ojiambo Oundo (Funyula) to be part of the committee.

This was after consultations with both the leaders of the majority and minority parties.

This mediation committee now awaits the appointment of an equal number of Senators who will join them in negotiations. The goal is to develop a consensus version of the Bill that satisfies both Houses of Parliament.

The Division of Revenue (Amendment) Bill aims to amend the Division of Revenue Act, 2024, adjusting the distribution of revenue collected nationally between the national and county governments.

This revision is necessary due to a downward adjustment in the projected ordinary revenue collection for the Financial Year 2024-2025.

The Bill was initially passed by the National Assembly on August 7, 2024, and subsequently amended by the Senate on October 3, 2024.

The Senate and the National Assembly are in mediation as counties face worsening financial constraints from the delayed passage of the Division of Revenue Bill, 2024.

Both Houses are at odds over the amount to be allocated to counties, with the Senate pushing for Sh400 Billion in shareable revenue while the National Assembly is proposing Sh380 Billion.

The cash crunch is expected to deepen with the National Assembly set to break for a short recess beginning Monday, which will last until November 5, 2024.

For the much-needed funds to be disbursed to counties, both Houses of Parliament must agree on and pass the Bill before it is sent to the President for assent.

The National Assembly defended its stance on reducing the allocation by Sh20 Billion, pointing to the revenue shortfall following the failure to pass the Finance Bill, 2024.

Initially, the government had aimed to collect Sh347 Billion to plug a deficit in its Sh3.92 trillion budget for the Financial Year 2024-2025.

However, the Senate rejected this amendment, claiming it would reduce funds allocated to counties.

The mediation process, which involves an equal number of representatives from both Houses, is now tasked with reconciling the differences.

Under Article 112 of the Constitution, the mediation committee has 30 days from its first sitting to agree on a version of the Bill that both Houses can pass.

If the committee fails to reach a consensus within that period, the Bill will be deemed defeated and may need to be reintroduced.

Should the Senate amend the Bill, it will be returned to the National Assembly for further consideration. If no changes are made, the Bill will be passed directly to the President for assent.