{"id":802969,"date":"2026-06-05T23:55:00","date_gmt":"2026-06-05T20:55:00","guid":{"rendered":"https:\/\/www.capitalfm.co.ke\/news\/?p=802969"},"modified":"2026-06-06T00:09:37","modified_gmt":"2026-06-05T21:09:37","slug":"sh420b-vs-sh454-7b-mps-seek-middle-ground-on-revenue-sharing-row","status":"publish","type":"post","link":"https:\/\/www.capitalfm.co.ke\/news\/2026\/06\/sh420b-vs-sh454-7b-mps-seek-middle-ground-on-revenue-sharing-row\/","title":{"rendered":"Sh420B vs Sh454.7B: MPs seek middle ground on Revenue Sharing row"},"content":{"rendered":"\n<p><strong>NAIROBI, Kenya Jun 5 &#8211; The Mediation Committee, co-chaired by Alego Usonga MP Samuel Atandi and Mandera Senator Ali Roba, has begun deliberations aimed at breaking the deadlock between the National Assembly and the Senate over the proposed allocation of revenue to county governments in the Division of Revenue Bill, 2026.<\/strong><\/p>\n\n\n\n<p>At the centre of the stalemate is the equitable share allocation to counties. While the National Assembly approved Kshs 420 billion, the Senate amended the Bill to increase the allocation to Kshs 454.7 billion, citing growing financial obligations facing county governments.<\/p>\n\n\n\n<p>Co-Chair Ali Roba defended the Senate\u2019s proposal, noting that it was informed by extensive consultations and data-driven analysis.<\/p>\n\n\n\n<p>He explained that counties are grappling with the pending implementation of Salaries and Remuneration Commission advisories and are also required to provide counterpart funding for programmes such as County Aggregation and Industrial Parks (CAIPs), Community Health Promoters (CHPs), the Financing Locally-Led Climate Action Programme (FLLoCA), the Food Systems Resilience Project (FSRP), and the National Agricultural Value Chain Development Project (NAVCDP).<\/p>\n\n\n\n<p>\u201cOur proposal is data-driven and informed by consultations. We must keep these realities in mind as we deliberate,\u201d he added.<\/p>\n\n\n\n<p>Budget and Appropriations Committee Chairman Atandi, acknowledged the importance of strengthening devolution but cautioned that the country\u2019s fiscal position remains constrained due to revenue underperformance.<\/p>\n\n\n\n<p>\u201cWe were in agreement that we should one day achieve a Kshs 450 billion allocation for counties. But the current realities of our fiscal environment have changed,\u201d said Atandi.<\/p>\n\n\n\n<p>He pointed out that despite investments aimed at enhancing revenue collection, the country is facing a revenue shortfall estimated at Kshs 200 billion.<\/p>\n\n\n\n<p>\u201cI am a strong proponent of increased allocations to counties, but we must also appreciate the realities, including global economic challenges. We want the government to succeed and the country to move forward,\u201d he stated.<\/p>\n\n\n\n<p>Narok Senator Ledama Olekina stressed that counties require adequate resources to sustain service delivery and meet financial obligations.<\/p>\n\n\n\n<p>\u201cThe situation is dire. Counties have many pending bills, and service delivery has been disrupted. Counties are asking for the constitutional minimum to help them settle pending bills and meet operational costs,\u201d said Olekina.<\/p>\n\n\n\n<p>Members of the National Assembly reiterated their commitment to devolution while pushing for fiscal prudence.<\/p>\n\n\n\n<p>Kibwezi West MP Mwengi Mutuse noted that although lawmakers share the goal of strengthening county governments, resource constraints require difficult budgetary decisions.<\/p>\n\n\n\n<p>\u201cAll of us are speaking the same language. We support devolution, and devolution must be funded. At some point we will get to the Kshs 450 billion mark, but we may not get there today,\u201d he said.<\/p>\n\n\n\n<p>He observed that the national budget stands at approximately Kshs 4.8 trillion against a deficit of about Kshs 1.1 trillion, raising concerns about increased borrowing.<\/p>\n\n\n\n<p>\u201cWe must face the country honestly and make responsible decisions that safeguard fiscal sustainability,\u201d he added.<\/p>\n\n\n\n<p>Nominated Senator Tabitha Mutinda maintained that the Senate\u2019s role is to protect county interests and ensure resources follow devolved functions.<\/p>\n\n\n\n<p>\u201cThe Senate has to defend counties. We need to look at areas where resources can be rationalised, particularly where services are already devolved,\u201d she said.<\/p>\n\n\n\n<p>On his part, Endebess MP Robert Pukose urged members to examine available funding channels supporting counties, particularly in healthcare.<\/p>\n\n\n\n<p>He noted that funding for primary healthcare has been enhanced and that resources directed through the Primary Healthcare Fund are expected to strengthen services at the county level.<\/p>\n\n\n\n<p>\u201cIf the Primary Healthcare Fund works effectively, significant resources will flow directly to counties,\u201d said Pukose.<\/p>\n\n\n\n<p>He also called for prudent financial management at the county level, noting concerns raised regarding the settlement of pending bills.<\/p>\n\n\n\n<p>The Division of Revenue Bill, 2026, seeks to provide for the equitable division of nationally raised revenue between the national and county governments for the 2026\/27 financial year.<\/p>\n\n\n\n<p>Following disagreement between the National Assembly and the Senate on amendments to the Bill, a mediation committee was established in accordance with the Constitution and parliamentary procedures to develop a version acceptable to both Houses.<\/p>\n\n\n\n<p>The Mediation Committee is expected to continue negotiations next week.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>At the centre of the stalemate is the equitable share allocation to counties. While the National Assembly approved Kshs 420 billion, the Senate amended the Bill to increase the allocation to Kshs 454.7 billion, citing growing financial obligations facing county governments.<\/p>\n","protected":false},"author":12343,"featured_media":802970,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3300,23985,53321],"tags":[57469,1981,491,59182],"coauthors":[270,407],"class_list":["post-802969","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budget","category-parliament","category-protecting-devolution","tag-division-of-revenue-bill-2026","tag-featured","tag-kenya","tag-national-assembly-senate-mediation-process"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Sh420B vs Sh454.7B: MPs seek middle ground on Revenue Sharing row &#187; Capital News<\/title>\n<meta name=\"description\" content=\"At the centre of the stalemate is the equitable share allocation to counties. 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