The National Assembly and the Senate have struck a compromise on the Division of Revenue Bill 2015, which spells out how funds will be shared between the central government and the counties, averting a service delivery crisis in the 47 devolved units.
After a month of deadlock, a six-member mediation committee chaired by Mbeere South MP Mutava Musyimi resolved that counties would get Sh287 billion up from the Sh283.7 billion proposed by the National Assembly and down from Sh291 billion set by the Senate.
The committee also increased the budget allocations to counties for salaries and benefits and Level Five hospitals by Sh3.3 billion.
The committee chosen by the two Houses had earlier failed to agree on the amount of money that should be allocated to counties.
The law requires the mediation committee to reach a deal within 30 days failure to which the Revenue Bill would collapse and new one would be needed. The 30-day deadline ended at midnight.
The Senate had increased MPs’ proposed Sh283.7 billion by Sh7.7 billion to cater for Level Five hospitals and emergencies.
The committee struck a middle ground and proposed Sh1.767 billion in sharable revenue to be used to pay salaries and allowances of Members of County Assemblies (MCAs) arising from the increment approved by the Salaries and Remuneration Commission last year after a review.
Senate Standing Committee on Finance, Commerce and Budget chaired by Mr Billow Kerrow said counties require Sh12 billion to meet salaries and allowances to MCAs.
Under the current allocation in the contested Division of Revenue Allocation over Sh4 billion had been set aside for compensating MCAs leaving a balance of Sh8 billion.
The mediation team also approved an allocation of Sh1.536 billion that would be shared among the 11 Level Five hospitals.
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