NAIROBI – A fresh political standoff is brewing between Kenya’s two Houses of Parliament, this time over how much money should go to the counties.
On Monday, the National Assembly firmly rejected a Senate-backed push to raise the county revenue share by KSh60 billion, sparking a mediation process that could drag on for weeks.
At the centre of the row is the Division of Revenue Bill, 2025, which sets out how funds are split between national and county governments. The National Assembly had approved KSh405 billion for counties. The Senate amended it to KSh465 billion. MPs voted to shoot that down.
“We’re not against counties,” said Majority Leader Kimani Ichung’wah on the floor of the House. “But given our current fiscal space, it is not practical to make such an increment.”
He warned that adding billions more would stretch an already tight budget and described the amendment as “fiscally irresponsible.”
Bumula MP Jack Wamboka echoed that view. “It is abnormal for anyone to think we should be increasing these monies upwards,” he said.
The rejection now triggers a formal mediation process, as laid out in Article 113 of the Constitution. A joint committee of senators and MPs will be tasked with finding common ground on the final figure, which will feed into the national budget for the 2025/26 financial year.
Counties Cry Foul
The Senate, however, is standing its ground. Senators argue counties are under immense pressure to deliver services, yet are routinely underfunded. The proposed increase, they say, is not just reasonable — it’s necessary.
“Counties are being asked to do more with less,” said Tabitha Mutinda, vice chair of the Senate Finance Committee. “They’re footing bills for national policies like the housing levy and community health payments, without adequate funding.”
According to Senate documents, counties have been saddled with at least KSh34 billion in fixed costs that stem from national directives. These include mandatory contributions to the Housing Levy, the National Social Security Fund, and salary hikes for doctors under previous agreements.
Senate Majority Leader Aaron Cheruiyot put it bluntly: “It makes no sense to fight over KSh400 billion or KSh450 billion when more than half of that money goes to paying salaries. What about services for millions of Kenyans?”
A Question of Priorities
At the heart of the impasse lies a deeper debate: how best to balance Kenya’s strained national budget with the promises of devolution.
The National Treasury has maintained that the current KSh405 billion figure already reflects a Sh17.6 billion increase from the previous year. Speaker of the National Assembly, Moses Wetang’ula, said the figure was carefully calculated to match real revenue projections and support the government’s push to reduce borrowing.
“This is about slowing the growth of public debt and ensuring long-term fiscal sustainability,” he said.
But Senate Chief Whip Boni Khalwale dismissed that argument, calling for a more equitable share between national and county governments. “We are tired of seeing one region 100 years ahead of another,” he said, accusing successive governments of ignoring marginalised areas.
“All 290 sub-counties must develop at the same pace,” he added, warning that uneven development would only fuel national divisions.
What Happens Next?
Both Houses will now nominate members to the mediation committee, which will attempt to broker a deal that satisfies both sides. The committee’s decision must then be approved by both chambers, or the Bill fails.
With the budget deadline looming and county governments warning of service disruptions, pressure is mounting on lawmakers to strike a deal quickly.
This latest clash reflects broader tensions over Kenya’s system of devolved governance a model praised for bringing services closer to the people, but often plagued by funding rows and inefficiencies.
Whether the mediation talks will yield a compromise remains to be seen. But as the Treasury counts every shilling, the politics of money and who controls it remains as fraught as ever.
