County governments are poised to receive KSh428 billion in equitable share funding during the 2026/27 financial year following a breakthrough agreement between the National Assembly and the Senate on the Division of Revenue Bill, 2026.
The consensus was reached after a series of mediation sessions convened to resolve disagreements between the two Houses over the amount of money to be allocated to county governments. The negotiations culminated in an agreement that lawmakers described as a significant win for devolution and service delivery across the country.
The mediation committee announced the deal after several days of deliberations, paving the way for the processing of key legislation needed to facilitate the release of funds to counties.
National Assembly Budget and Appropriations Committee Chairperson Samuel Atandi, who co-chaired the mediation team, welcomed the agreement, saying both Houses had demonstrated commitment to finding a solution that serves the interests of Kenyans.
“We have agreed on KSh428 billion. This is in line with constitutional requirements and will ensure counties continue delivering essential services to citizens,” Atandi said.
Mediation Process Ends Funding Standoff
The dispute over county allocations had threatened to delay the approval of the Division of Revenue Bill and subsequent county funding processes. However, members of the mediation committee said the negotiations remained constructive despite differing positions from the two Houses.
Senate Finance and Budget Committee Chairperson Ali Roba noted that while discussions were challenging, both sides remained focused on reaching a settlement that would allow counties to receive funds on time.
He emphasized the need to fast-track the remaining legislative processes, including the County Allocation of Revenue Bill and the disbursement schedule, to prevent delays in county operations.
“We have concluded an intensive but productive mediation process. The next step is to finalize the necessary legislation so that county governments can access resources without interruption,” Roba said.
Counties and National Government to Benefit
Members of the committee argued that the agreed allocation strikes a balance between county financing needs and the national government’s development obligations.
MP Christopher Aseka said the KSh428 billion allocation would support county programmes while allowing the national government to continue implementing critical infrastructure and development projects.
“This amount provides a workable balance. Counties require adequate resources to operate effectively, but the national government also has important programmes that must be funded,” he said.
Senator Ledama Olekina also backed the settlement, expressing satisfaction with the final agreement and calling for strict accountability in the utilization of public funds.
He urged relevant institutions to ensure counties receive the full allocation approved under the agreement and stressed the importance of prudent financial management at all levels of government.
Next Steps
The agreement now clears the way for Parliament to complete consideration of the Division of Revenue Bill and proceed with the County Allocation of Revenue Bill, which determines how funds will be distributed among the 47 counties.
County governments have been pushing for increased allocations to help meet rising service delivery demands, including healthcare, agriculture, water services, and infrastructure development.
The latest deal is expected to provide certainty for county budgets ahead of the new financial year and help avoid disruptions to county operations.
Leadership Changes in Parliamentary Committee
The development comes shortly after Luanda MP Dick Maungu was elected unopposed as the new chairperson of the National Assembly’s Public Investments Committee on Education and Governance.
Maungu takes over the position following leadership changes within the committee and has pledged to promote transparency, accountability, and teamwork in carrying out the committee’s oversight mandate.
Speaking after his election, the lawmaker thanked members for their confidence and promised to work collaboratively to strengthen governance and ensure effective oversight of public investments.
