The Senate, Kenya Private Sector Alliance (KEPSA) have called for urgent reforms to improve county competitiveness, reduce bureaucratic barriers and create a more attractive environment for investment and job creation.

Speaking during a roundtable between the Senate Liaison Committee and KEPSA in Naivasha, Clerk of the Senate Mr Jeremiah Nyegenye said the forum had become an important platform for shaping policies and legislation that influence business growth and livelihoods in counties.

The Mediation Committee co-chaired by Hon. Samuel Atandi and Sen. (Capt.) Ali Roba has begun deliberations aimed at breaking the deadlock between the National Assembly and the Senate over the proposed allocation of revenue to county governments in the Division of Revenue Bill, 2026.

At the centre of the stalemate is the equitable share allocation to counties. While the National Assembly approved Kshs 420 billion, the Senate amended the Bill to increase the allocation to Kshs 454.7 billion, citing growing financial obligations facing county governments.

The Senate has renewed its call for the removal of bureaucratic barriers hindering investment in counties, saying streamlined regulations and efficient service delivery are critical to unlocking economic growth and strengthening devolution.

Senators have questioned the Kenya Revenue Authority (KRA) over the impact of multiple taxes on fuel prices, with some lawmakers calling for tax reductions and the suspension of certain levies to ease the cost of living burden on Kenyans.

Appearing before the Senate Standing Committee on Energy, KRA officials defended the current petroleum taxation framework while outlining the agency’s role in fuel imports, customs administration and revenue collection.