A renewed clash has emerged between Kenya’s National Assembly and the Senate after Members of Parliament rejected Senate amendments to the Division of Revenue Bill (No. 10 of 2025), igniting a fresh standoff over county funding.
During Tuesday’s parliamentary session, MPs voted down the Senate’s proposal to increase county allocations from Sh405 billion to Sh465 billion for the 2025/26 financial year. The proposed Sh60 billion increment was deemed financially untenable by lawmakers, who cited the country’s strained fiscal position.
National Assembly Majority Leader Kimani Ichung’wah, who led the opposition to the Senate’s changes, defended the House’s original allocation of Sh405 billion. “This is an increase of about Sh65 billion above what is agreed, and bearing in mind the fiscal space of the country, it may not be practical to increase,” he said, urging MPs to reject the proposal in totality.
The Senate had sought to raise the counties’ equitable share to Sh465.001 billion, arguing that devolved units require more resources to meet development needs. However, with the National Assembly’s rejection, the bill will now be subjected to mediation, as mandated by Article 113 of the Constitution.
A mediation committee composed of members from both Houses will be formed to reconcile the differences. The committee’s decision will be crucial in determining the final allocation to counties and ensuring the national budget remains on schedule.
This is not the first time the two Houses have locked horns over county funding. In the 2024/25 financial year, the National Assembly similarly rejected a Senate proposal to raise allocations by Sh24.84 billion to Sh415.95 billion.
The ongoing tension underscores the perennial budgetary tug-of-war between the Senate, which advocates for enhanced county funding, and the National Assembly, which prioritizes overall fiscal discipline. The outcome of the mediation process will reveal whether the two Houses can strike a balance between supporting devolution and maintaining economic prudence.
