MPs and Senators Seal Ksh415 Billion Deal for Counties in 2025/26 Budget
In a landmark consensus that promises financial relief to devolved units, Parliament has resolved a prolonged standoff over county funding with an agreed allocation of Ksh415 billion for the 2025/26 financial year.
The breakthrough follows weeks of back-and-forth between the National Assembly and the Senate over the Division of Revenue Bill 2025. Initially, the National Assembly had proposed Ksh405 billion for county governments, while the Senate pushed for a significant bump to Ksh465 billion. The deadlock triggered the formation of a Mediation Committee comprising lawmakers from both houses.
On Wednesday, June 18, Parliament released a statement confirming that the mediation process had reached a final consensus. “The Mediation Committee on the Division of Revenue Bill, 2025 (National Assembly Bills No. 10 of 2025) has reached a final agreement on a Ksh415 billion allocation for the County Equitable Share for the Financial Year 2025/26,” read the official communication.
The agreed amount represents a Ksh10 billion increase from the National Treasury’s initial proposal, translating to a 4.8% rise. It also reflects a Ksh27.6 billion increment from last year’s allocation of Ksh387.4 billion, which was marred by protracted negotiations and fiscal challenges at the county level.
The allocation will now be tabled in both the National Assembly and the Senate for debate and formal approval. It is scheduled to appear in the National Assembly’s afternoon session on Wednesday, June 18.
The increased funding is expected to ease pressure on county governments, enabling them to pay workers on time and fund stalled development projects. Contractors, healthcare workers, and other public servants who have endured delays in payments are likely to benefit from the timely disbursement of the equitable share.
Treasury Cabinet Secretary John Mbadi, while presenting the national budget on June 13, projected total transfers to counties at Ksh474.9 billion. Of this, the equitable share component stood at Ksh405.1 billion, with the remaining amount covering conditional grants and other transfers.
This latest agreement signifies a vital step towards the finalisation of the 2025/26 budget, ensuring resources are fairly shared among all levels of government and reinforcing the constitutional principle of devolution.
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MPs and Senators Seal Ksh415 Billion Deal for Counties in 2025/26 Budget