NAIROBI, Kenya Jun 30 – The Senate has unanimously passed the mediated version of the Division of Revenue Bill, paving the way for the disbursement of 415 billion Shillings to county governments as equitable share for the 2025/26 Financial Year.
This allocation reflects a 10 billion Shillings increase from the National Treasury’s earlier proposal of 405.1 billion Shillings, marking a 4.8 percent growth, following extensive deliberations by the Mediation Committee.
The passage of the mediated Division of Revenue Bill brings counties closer to receiving funds for the upcoming fiscal year, but the debate in the House underlined the urgency of aligning financial allocations with measurable development outcomes.
The Bill now awaits assent by the President.
A joint mediation committee from both Houses had been deadlocked over the equitable share of revenue to counties for days.
Senators had initially demanded Sh465 billion, arguing the amount matched the devolved functions, while the National Assembly held firm on the National Treasury’s proposal of Sh405 billion.
Senate Finance Committee Chair Ali Roba (Mandera) said further attempts to push beyond Sh415 billion would risk paralyzing county operations due to prolonged stalemates.
The agreement between the two Houses comes amid growing frustration from governors, who had demanded Sh526 billion.
They have threatened to withdraw from future negotiations on the Division of Revenue Bill (DORA), accusing the process of being predetermined and dismissive of devolution.
The Division of Revenue Bill, once enacted, becomes the Division of Revenue Act a key piece of legislation that outlines the equitable sharing of nationally raised revenue between the national and county governments each financial year.
Governors have decried that DORA consultations have become a mere formality, with county input routinely ignored despite the massive transfer of responsibilities from the national government.
