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.

Co-Chair, Sen.Ali Roba defended the Senate's proposal, noting that it was informed by extensive consultations and data-driven analysis.

He explained that counties are grappling with pending implementation of Salaries and Remuneration Commission advisories and are also required to provide counterpart funding for programmes such as County Aggregation and Industrial Parks (CAIPs), Community Health Promoters (CHPs), the Financing Locally-Led Climate Action Programme (FLLoCA), the Food Systems Resilience Project (FSRP), and the National Agricultural Value Chain Development Project (NAVCDP).

"Our proposal is data-driven and informed by consultations. We must keep these realities in mind as we deliberate," he added.

Budget and Appropriations Committee Chair, Hon. Atandi acknowledged the importance of strengthening devolution but cautioned that the country's fiscal position remains constrained due to revenue underperformance.

"We were in agreement that we should one day achieve Kshs 450 billion allocation for counties. But the current realities of our fiscal environment have changed," said Hon. Atandi.

He pointed out that despite investments aimed at enhancing revenue collection, the country is facing a revenue shortfall estimated at Kshs 200 billion.

"I am a strong proponent of increased allocations to counties, but we must also appreciate the realities, including global economic challenges. We want the government to succeed and the country to move forward," he stated.

Sen. Ledama Olekina stressed that counties require adequate resources to sustain service delivery and meet financial obligations.

"The situation is dire. Counties have many pending bills and service delivery has been disrupted. Counties are asking for the constitutional minimum to help them settle pending bills and meet operational costs," said Sen. Olekina.

Members of the National Assembly reiterated their commitment to devolution while pushing for fiscal prudence.

Hon. Mwengi Mutuse noted that although lawmakers share the goal of strengthening county governments, resource constraints require difficult budgetary decisions.

"All of us are speaking the same language. We support devolution and devolution must be funded. At one time we will get to the Kshs 450 billion mark, but we may not get there today," he said.

He observed that the national budget stands at approximately Kshs 4.8 trillion against a deficit of about Kshs 1.1 trillion, raising concerns about increased borrowing.

"We must face the country honestly and make responsible decisions that safeguard fiscal sustainability," he added.

Sen. Tabitha Mutinda maintained that the Senate's role is to protect county interests and ensure resources follow devolved functions.

"The Senate has to defend counties. We need to look at areas where resources can be rationalised, particularly where services are already devolved," she said.

On his part, Hon. (Dr.) Robert Pukose urged Members to examine available funding channels supporting counties, particularly in healthcare.

He noted that funding for primary healthcare has been enhanced and that resources directed through the Primary Healthcare Fund are expected to strengthen services at the county level.

"If the Primary Healthcare Fund works effectively, significant resources will flow directly to counties," said Dr. Pukose.

He also called for prudent financial management at the county level, noting concerns raised regarding the settlement of pending bills.

Hon. Japheth Nyakundi echoed support for county governments while acknowledging the pressure created by debt obligations and reduced revenues.

"We really want to support and give more money to counties. The reality, however, is that resources are limited. We must work together to find sustainable solutions," he said.

The Division of Revenue Bill, 2026, seeks to provide for the equitable division of nationally raised revenue between the national and county governments for the 2026/27 financial year. Following disagreement between the National Assembly and the Senate on amendments to the Bill, a mediation committee was established in accordance with the Constitution and parliamentary procedures to develop a version acceptable to both Houses.

The Mediation Committee is expected to continue negotiations next week