Counties will have to wait longer to access their share of revenue as Senators and MPs enter talks to resolve the ongoing impasse surrounding President William Ruto’s proposal to cut the shareable revenue by Ksh 20 billion, reducing it from Ksh 400.1 billion to Ksh 380 billion.
In response to the disagreement, an 18-member mediation committee has been established to facilitate discussions. Senators previously rejected the National Assembly’s decision to support the reduction, insisting that counties should receive the original amount of Ksh 400 billion outlined in the Division of Revenue bill.
The mediation team includes notable senators such as Edwin Sifuna (Nairobi), Mohamed Faki (Mombasa), and Richard Onyonka (Kisii), among others. The National Assembly’s representatives include Budget and Appropriations Committee Chair Ndindi Nyoro and several other MPs from various constituencies.
National Assembly Speaker Moses Wetang’ula confirmed the formation of the mediation committee following the Assembly’s rejection of the Senate’s amendments to the Division of Revenue (Amendment) Bill. He emphasized the need for collaboration to resolve the stalemate, as outlined in the Constitution and parliamentary procedures.
Senate Speaker Amason Kingi also communicated the Senate’s position and called for the appointment of senators to the mediation committee after receiving the National Assembly’s rejection of their amendments.
This development follows a significant vote in the Senate where 28 members supported retaining the original Ksh 400.1 billion allocation, with no opposition. This figure was initially agreed upon after the National Assembly had proposed a higher amount of Ksh 415 billion.
President Ruto’s proposal for a reduction came after he declined to assent to the Finance Bill, highlighting concerns about the government’s financial obligations for the 2024/2025 fiscal year. Treasury Cabinet Secretary John Mbadi explained that the proposed reduction was necessitated by a significant drop in projected national revenue. As negotiations continue, both sides face pressure to find a resolution that will ensure counties receive adequate funding to meet their needs.
