MPs reject Senate’s push for extra Sh60 billion for counties

The National Assembly has rejected a Senate proposal to increase the counties’ equitable share of revenue by Sh60 billion, setting the stage for a mediation process between the two Houses.

During a session on Tuesday, Majority Leader Kimani Ichung’wah urged MPs to dismiss the Senate’s amendments to the 2025 Division of Revenue Bill, which sought to raise the allocation to counties from Sh405 billion to Sh465 billion.

“This Division of Revenue Bill approved by the House had about Sh405 billion, and the Senate amended that to about Sh465 billion. That is an increase of roughly Sh60 billion above what was agreed. Bearing in mind the fiscal space that we have, it may not be practical to increase by Sh60 billion. Having considered that, we thought it’s only fair to reject these amendments by the Senate to allow for early mediation,” Ichung’wah said.

He said an early mediation process would help resolve the deadlock and allow timely passage of the Bill, which is key to preparing the 2025/2026 national budget.

Bumula MP Jack Wamboka supported the motion, terming the proposal unrealistic. “I beg to second, bearing in mind the fiscal space the country is operating in. It is only abnormal for anyone to think we should be increasing these monies upwards,” he told the House.

The rejection means the Bill will now be referred to a mediation committee under Article 113 of the Constitution. The team, made up of members from both Houses, will try to agree on a final version of the Bill to avoid delays in the national budget cycle.

The Senate had passed the amendment to raise the counties’ equitable share to Sh465.001 billion, arguing that counties are under heavy financial pressure due to delayed disbursements, rising costs, and growing wage bills.

Senate Chief Whip Boni Khalwale backed the proposal, saying it was about fairness in development. “We are tired of seeing one region 100 years ahead of another simply because no one from that region has become President or Prime Minister,” he said.

Khalwale said all counties must grow equally and called on President William Ruto’s government to ensure a fair distribution of resources.

The Senate’s Finance and Budget Committee Vice Chairperson Tabitha Mutinda defended the Sh60 billion increase, pointing to non-discretionary expenses imposed on counties.

She listed costs such as Sh4.1 billion for the Housing Levy, Sh6 billion for NSSF contributions, and over Sh11 billion for County Aggregated Industrial Parks and community health promoter payments. Counties are also facing pressure from wage increases and doctors’ salary adjustments.

However, Senate Majority Leader Aaron Cheruiyot questioned how counties manage the money they already receive. He said 34 out of 47 counties spend more than half of their equitable share on salaries and other recurrent expenses.

“It makes no sense to fight for Sh400 billion or Sh450 billion for counties when 90 per cent of that money is misappropriated,” Cheruiyot said.