Breakthrough Deal Unlocks Ksh428 Billion for Counties
The long-running tug-of-war over revenue sharing has finally eased after a mediation committee forged a landmark agreement on the Division of Revenue Bill for 2026.
Lawmakers from both the National Assembly and Senate settled on an equitable allocation of Ksh 428 billion for county governments, bringing relief to devolved units that had been caught in weeks of uncertainty. This resolution marks a significant step forward in balancing national and local fiscal needs, ensuring counties can continue delivering essential services without disruption.
The deal, hammered out over seven intense meetings, also revives a crucial safeguard known as Clause 5. This provision shields county funds from sudden reductions when national revenue falls short, offering much-needed stability in planning and budgeting. Co-chair Samuel Atandi hailed the outcome as a win for consensus and the Kenyan people, while Senate leaders like Ali Roba described the talks as tough yet productive, aimed squarely at advancing the nation's development agenda.
Lawmakers across the board welcomed the compromise as a boost for devolution and responsible governance. Several urged counties to prioritize clearing pending bills and strengthen financial oversight to prevent misuse of public resources. Others stressed the importance of timely disbursements and addressing additional funding gaps, such as equalization fund arrears, to keep local operations running smoothly.
With reports now set to be tabled in Parliament for final approval, the focus shifts to implementation and accountability. This agreement not only unlocks vital resources for health, infrastructure, and other county priorities but also reinforces the collaborative spirit needed to make Kenya's devolved system thrive. As funds begin to flow, the real test will lie in how effectively counties translate this financial boost into tangible improvements for ordinary citizens.
