Senators, MPs reach deal on allocation to counties
Co-Chairs of the mediation committee Ali Roba and Ndindi Nyoro (Right) during the session at the Senate chambers Nairobi on Thursday, November 7, 2024.
County governments will receive Sh387 billion as the equitable share of revenue raised nationally after a mediation committee of the National Assembly and Senate struck a deal on the stalled Division of Revenue Bill, 2024.
The 18-member mediation team, with equal representation from both Houses, yesterday ended a stalemate that had threatened to paralyse services in the 47 devolved units.
The impasse arose after the National Assembly voted to overturn the Sh400 billion that counties had been allocated in an earlier Division of Revenue Bill, 2024.
The MPs had proposed to cut the allocation by Sh20 billion to Sh380 billion following the rejection of the Finance Bill, 2024.
“We have agreed to allocate counties Sh387 billion comprising Sh385 billion that was allocated in the financial year 2023/24 and an additional Sh2 billion to cater for inflationary pressure,” Mr Ndindi Nyoro, the co-chairperson of the mediation committee said.
“I am happy to announce that we have resolved that we do not give counties less money than what they got in the last financial year. We have agreed unanimously to reinstate the Sh385 billion that counties received in the last financial year and provided an additional Sh2 billion to enable counties to execute their mandate.’’
Mr Nyoro, who chairs the National Assembly’s Budget and Appropriations Committee (BAC), and Senate Finance and Budget Committee Chairperson Ali Roba promised to fast track the passage of the mediated version of the Bill before December 1.
Counties have been receiving 50 percent of the total budget for the 2024/25 financial year for the equitable shareable revenue raised nationally as advised by the Attorney-General. The law allows counties to access up to 50 percent of the revenue if the Division of Revenue Bill is not passed within the first six months of the financial year.
“We are proceeding for a long recess and we don’t want counties to be in a gridlock. We will be asking the National Assembly to fast track the passage of this Bill,” Mr Nyoro said.
He added that the mediation committee had also agreed to provide an additional Sh45 billion under the County Government Additional Allocation Bill.
Mr Roba, who co-chaired the mediation committee with Mr Nyoro, said the economic reality facing the country had forced the team to make the decision to increase the counties’ allocation by Sh7 billion from the proposed Sh380 billion.
“There is a need for goodwill between the National Assembly and the Senate to quickly pass this mediated version of this Bill. We need to urgently support counties with these resources,” the Mandera senator said.
“As the Senate, we will move with speed to pass the Division of Revenue Bill, 2024 and the County Allocation of Revenue Bill, 2024 to unlock funding to counties.’’
Committee members asked the county governments to institute austerity measures, increase their own-source revenue, seal revenue leakages and pay pending bills with the Sh387 billion that they have been allocated.
The committee had earlier hit out at National Treasury Cabinet Secretary John Mbadi for ruling out additional allocation of Sh20 billion to counties.
Mr Mbadi on Monday said that while the demand for more money to counties is justified, the country’s economy is strained and cannot support the Sh400 billion demanded by the devolved units and supported by senators.
The committee said the remarks by Mr Mbadi asking governors to take the Sh380 billion allocated by the National Assembly amounted to interference with the mandate of the mediation committee and Parliament.
