The Mediation Committee on the Division of Revenue Bill, 2026 has reached a breakthrough agreement setting the equitable share for county governments at Ksh 428 billion.

The agreement, reached after seven meetings, also paved the way for the reinstatement of Clause 5 of the Division of Revenue Bill, a provision aimed at protecting county allocations from arbitrary cuts arising from national revenue shortfalls.

Announcing the agreement, co-chairperson and Budget and Appropriations Committee Chairperson Hon. Samuel Atandi welcomed the compromise, saying it reflected the spirit of consensus and national interest.

“We have settled on Kshs 428 billion. This is a constitutional imperative and Kenyans are going to be happy,” said Hon. Atandi.

Senate Finance and Budget Committee Chairperson Sen. Ali Roba described the negotiations as difficult but necessary. “It has been a very difficult but cordial engagement with the objective of pushing the country forward. Mediation happens in one of the most difficult settings,” said Sen. Roba. “We need to finish processing the Division of Revenue Bill so that we can process the County Allocation of Revenue Bill and get the disbursement schedule on time to unlock funds for counties.”

He further urged county governments to dedicate part of the allocation towards clearing pending bills.

Lawmakers hailed the compromise as a victory for devolution and fiscal responsibility. “We have come to an agreement,” said Hon. Japheth Nyakundi.

Hon. Christopher Aseka supported the settlement, noting that both levels of government required adequate resources. “This Kshs 428 billion is agreeable. We need our counties to run as well as national government programmes and projects,” he said.

Senator Ledama Olekina, while supporting the deal, challenged the National Assembly and the National Treasury to guarantee that counties receive the agreed funds in full. “Let's take this Kshs 428 billion. I am happy that we have agreed on Clause 5,” he said, while calling for stricter oversight of expenditure under Article 223 of the Constitution.

On his part, Senator Eddy Oketch applauded the goodwill demonstrated during the negotiations but emphasized the need for stronger accountability mechanisms at the county level.

“I want to applaud the National Assembly for pushing us on accountability,” said Sen. Oketch. “As much as we are fighting for funds to counties, we as the Senate need to hold county governors to account and prevent misappropriation.”

Senator Mohammed Faki said the agreement would provide stability for counties but expressed hope that additional conditional allocations and Equalisation Fund arrears would also be addressed.

“This afternoon we have agreed on Kshs 428 billion, but we hope to receive conditional allocations and the deficit of the Equalisation Fund to ensure counties remain running,” said Sen. Faki.

Following the agreement, the Members National Assembly Budget and Appropriations Committee and the Senate Committee on Finance and Budget will table reports in their respective House for subsequent consideration.