On Wednesday, the Senate Finance and Budget Committee convened and overwhelmingly voted to reject the National Assembly's amendments.
Nairobi County received the highest allocation, totaling Sh173 billion, benefiting its population of 4,397,073.
This mediation committee now awaits the appointment of an equal number of Senators who will join them in negotiations.
Mbadi insisted that the current administration under President William Ruto cannot meet the Sh400 billion demand from the 47 governors.
Ruto cited the failure to enact the Finance Bill, 2024, necessitating the re-organisation and rationalization of the government's financial arrangements for the current financial year.