Members of the Mediation Committee on the Division Revenue Bill. Photo Courtesy. 
By Andrew Mbuva
The Mediation Committee on the Division of Revenue Bill, 2025 held its third sitting yesterday, with the impasse between the National Assembly and the Senate persisting over the equitable share of revenue allocated to county governments.
Co-chair Hon. Samuel Atandi (Alego Usonga) firmly reiterated the National Assembly's stance, emphasizing that the House can only commit to an allocation of Kshs. 410 billion, citing tight economic conditions and limited fiscal space.
"Out of the Kshs. 2.7 trillion revenue projected for the coming financial year, Kshs. 1.1 trillion will go toward debt interest payments," Hon. Atandi said. “Even as you push for upward adjustments, you must consider the fiscal constraints. From our end, any increase is extremely difficult.”
On the other hand, Senate Co-chair Sen. Ali Roba (Mandera) continued to advocate for a higher allocation, pointing to stagnant county funding despite rising inflation and growing service delivery demands.
"There’s goodwill from both sides, but we must urgently find a middle ground," said Sen. Roba. “In the past six years, county revenue has hardly grown — only once did it move from Kshs. 316 billion to Kshs. 370 billion.”
Backing the Senate’s position, Sen. Boni Khalwale (Kakamega) insisted that any revenue shortfalls should be absorbed by the national government.
"We want our counties to take off. The President has indicated that economic performance is improving," he said. “We stand by our call for Kshs. 427 billion. If the National Assembly won’t budge, the Constitution will guide us.”
Hon. (Dr.) Robert Pukose (Endebess) supported the Senate’s argument on shielding counties from fiscal shocks, but cautioned against adopting unrealistic figures.
"I agree that counties shouldn’t be penalized for revenue shortfalls," Dr. Pukose said. “However, if we pass an impractical figure, counties will end up with pending bills due to delayed disbursements from the exchequer.”
Despite the sharp divergence, both Houses acknowledged the constitutional requirement for equitable sharing of national revenue between the two levels of government.
In a minor shift toward compromise, the Senate lowered its demand from Kshs. 427 billion to Kshs. 425 billion, while the National Assembly maintained its Kshs. 410 billion offer.
The mediation committee is expected to reconvene after further consultations in a renewed attempt to bridge the gap and avoid a constitutional crisis.
