County governments are set to receive Ksh428 billion in the 2026/27 financial year after a mediation committee established to resolve differences between the National Assembly and the Senate reached a consensus on the Division of Revenue Bill, 2026.
The breakthrough follows a week of negotiations and seven mediation meetings aimed at resolving the dispute over the amount of money to be allocated to counties.
The deal was announced on Tuesday, June 9, at Parliament Buildings, with lawmakers from both Houses describing the outcome as a major step toward safeguarding devolution and ensuring counties receive adequate funding.
Speaking after the agreement was reached, Mediation Committee co-chairperson and Chairperson of the National Assembly Budget and Appropriations Committee, Samuel Atandi, welcomed the compromise and said it reflected the commitment of both sides to finding common ground.
"We have settled on Kshs 428 billion. This is a constitutional imperative, and Kenyans are going to be happy," he said.
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Senate Finance and Budget Committee Chairperson Ali Roba acknowledged the challenges encountered during the negotiations, noting that the discussions had been intensive but constructive.
"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.
"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 stated.

Members of the mediation committee welcomed the agreement, saying it balanced the funding needs of both levels of government.
Christopher Aseka said the agreed amount would support county operations while also allowing the national government to continue implementing its programmes and development projects.
"This KSh428 billion is agreeable. We need our counties to run as well as national programmes and projects," he noted.
Senator Ledama Olekina expressed support for the settlement and praised the inclusion of Clause 5, while urging the National Assembly and the National Treasury to ensure the full amount reaches counties.
"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.
Elsewhere, this comes days after Luanda MP Dick Maungu took over as the chairperson of the National Assembly's Public Investments Committee on Education and Governance, following the removal of Bumula MP Jack Wamboka from the leadership position.
Maungu secured the position unopposed during a committee session held at Parliament Buildings on Thursday, June 4.
His nomination was moved by Embakasi West MP Mark Mwenje and supported by Igembe Central MP Daniel Kariitho.
Speaking after assuming office, Maungu thanked fellow committee members for backing his leadership and committed to fostering teamwork, accountability, and openness within the committee.
"I thank you for the confidence you have shown in me. I promise that together we shall work for the betterment of our country," he said.
The newly elected chairperson also emphasized the importance of unity among committee members as they undertake their oversight responsibilities.
"We are one team and one people. We shall work together to ensure we achieve our objectives, while epitomising transparency in all our undertakings," he added.




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