Relief for County Workers as Parliament Agrees on New Ksh415 Billion Allocation
County government workers and contractors across Kenya have a reason to celebrate after lawmakers from both the Senate and the National Assembly struck a long-awaited deal on the allocation of funds to counties.
A mediation committee, made up of members from both Houses of Parliament, finally agreed on a Ksh415 billion allocation for the County Equitable Share, putting an end to the prolonged standoff that had delayed the release of critical county funds.
This new agreement follows weeks of back-and-forth between the two chambers of Parliament. Two weeks ago, the National Assembly had rejected the Senate’s amendment to the initial proposal of Ksh405 billion.
The Senate had pushed for a massive increase to Ksh465 billion, but the National Assembly disagreed, causing a stalemate that halted progress on the Division of Revenue Bill.
However, after several meetings, including a fourth and final sitting of the Mediation Committee, both sides reached a compromise figure of Ksh415 billion.
This figure represents a Ksh10 billion increase from the National Treasury’s original proposal and reflects a 4.8% rise in the funds allocated to counties for the 2025/26 financial year.
In a statement released by Parliament on Wednesday, June 18, it was confirmed that the committee had successfully resolved the differences between the two Houses.
“The Mediation Committee on the Division of Revenue Bill, 2025 (National Assembly Bills No. 10 of 2025) has reached a final agreement on a Ksh415 billion allocation for the County Equitable Share for the Financial Year 2025/26,” part of the statement read.
The next step will be for the Division of Revenue Bill to be tabled in both the National Assembly and the Senate for discussion and formal approval. The bill is scheduled to be presented during the Wednesday afternoon sitting of the National Assembly on June 18.
If passed, the new allocation will be a major improvement from last year’s Ksh387.4 billion, which led to drawn-out negotiations and cash flow problems in many counties.
The Ksh27.6 billion increase is expected to make a significant difference by enabling counties to finance development projects more effectively and pay staff salaries on time, which has been a recurring challenge in previous years.
This agreement is not just a win for county employees but also a critical step towards completing the national budget process.
It ensures that funds will be fairly and equitably distributed across all 47 counties, allowing them to carry out their responsibilities smoothly in the upcoming financial year.
During the reading of the national budget on Thursday, June 10, Treasury Cabinet Secretary John Mbadi had projected that counties would receive a total of Ksh474.9 billion.
This included an equitable share of Ksh405.1 billion, but with the new deal, counties now stand to benefit from an even more substantial Ksh415 billion allocation, which could greatly enhance service delivery and economic activities at the grassroots level.
Join Gen Z New WhatsApp Channel #JusticeforAlbertOjwang To Stay Updated On time
https://whatsapp.com/channel/0029VaWT5gSGufImU8R0DO30
