The Senate has approved Ksh 415 billion in equitable revenue share to Kenya’s 47 counties for the 2025/26 financial year, settling a protracted deadlock with the National Assembly.
The mediated Division of Revenue Bill was passed unanimously on Sunday, signaling the end of a weeks-long standoff between the two Houses. The National Treasury had earlier proposed Ksh 405.1 billion. The final figure marks a Ksh 10 billion increase, representing a 4.8 percent rise from the original draft.
The Bill now moves to President William Ruto for assent.
The breakthrough came after joint mediation talks that had stalled over sharp differences. Senators initially demanded Ksh 465 billion, citing the scope of devolved responsibilities. In contrast, the National Assembly insisted on Treasury’s figure, warning of budgetary constraints.
Mandera Senator Ali Roba, who chairs the Senate Finance Committee, called the Ksh 415 billion agreement a realistic compromise.
“We pushed as far as we could. Anything beyond this risked a stalemate that would delay disbursement and paralyze counties,” Roba said.
Despite the agreement, the Council of Governors has expressed deep dissatisfaction. Governors had lobbied for Ksh 526 billion and warned they would pull out of future Division of Revenue Bill negotiations. They claimed their input was ignored and the process lacked transparency.
“Consultations have become symbolic. County governments are treated as bystanders in decisions that directly affect their budgets,” one governor said during last week’s summit.
The Division of Revenue Bill is a constitutional requirement that outlines how nationally raised revenue is shared annually between the national and county governments. Once enacted, it becomes the Division of Revenue Act, which enables county budgets to be enacted and funds released.
The 2025/26 allocation will support ongoing devolved functions in health, agriculture, infrastructure, and education. The Council of Governors has warned that without predictable and sufficient funding, service delivery at the county level will suffer.
While the final amount falls short of the counties’ demands, the Senate leadership maintained that it reflects current economic conditions and was necessary to prevent financial gridlock as the new fiscal year begins on July 1.
