Counties in Financial Limbo as Parliament Fails to Reach Consensus on Revenue Allocation

Kenya’s counties are bracing for continued financial instability as Parliament remains divided over the 2024 revenue allocation. Mediation talks between the Senate and National Assembly ended in deadlock, with senators pushing for Ksh 400 billion in shareable revenue, while National Assembly members insist on Ksh 380.1 billion, citing budget constraints.

Senate Finance Committee Chair Ali Roba and National Assembly Budget Committee Chair Ndindi Nyoro urged the 18-member mediation committee to find common ground, emphasizing the importance of a unified solution for devolution. However, the stalemate persists as both sides hold firm. Senators argue that the counties deserve Ksh 400 billion, especially after initial discussions set this figure. Meanwhile, National Assembly members assert that, due to the June protests and withdrawal of the Finance Bill, the overall budget was adjusted from Ksh 4.2 trillion to Ksh 3.8 trillion, necessitating fiscal cutbacks.

Nairobi Senator Edwin Sifuna insisted the Senate would not accept a reduction below last year’s allocation of Ksh 385 billion without a convincing explanation from the National Assembly. He called for transparency and warned against any attempts to undermine counties.

Senators Migori’s Eddy Oketch and Veronica Maina stressed the critical importance of stable funding for county operations, urging a long-term solution that would protect devolution. Funyula MP Godfrey Oundo added that both sides should approach the matter responsibly, noting that counties seeking increased funding must also demonstrate transparency.

With the debate ongoing, the financial uncertainty facing counties continues to raise concerns, highlighting the urgent need for resolution to ensure the smooth functioning of Kenya’s devolved government.