The Mediation Committee on the Division of Revenue (Amendment) Bill, 2024, convened on Thursday, November 7, 2024, to address the funding dispute between the National Assembly and the Senate.

The disagreement centers on the amount of revenue allocated to counties, with the National Assembly proposing Kshs.380 billion, while the Senate insisting on Kshs.400.12 billion, the original figure under the Division of Revenue Act, 2024.

Co-chaired by Hon. Ndindi Nyoro (Kiharu) and Sen. Ali Roba (Mandera), the Committee met to agree on a possible resolution to the stalemate that has significantly impacted operations at the counties.

In his opening remarks, Hon. Nyoro informed Members on how the National Assembly settled on Kshs.380 for the County Equitable Share for this Financial Year, in light of the austerity measures.

“Initially, we had a budget of Kshs.4.2 trillion but after what happened in July, we revised the figures and the revisions led to a downgrade in expenditure but also an upside in projected deficit,” said Hon. Nyoro.

Hon. Nyoro further emphasized on the National Assembly’s support for devolution, and the need for the Mediation Committee to find a balance that will cater for the general welfare of our country.

These sentiments were echoed by Sen. Roba, who noted that devolution has come of age hence the need to ensure that Counties are adequately funded to ensure seamless operations for the public good.

The committee resolved to examine several factors including the reasoning behind the reduction of the allocation to counties by Kshs.5 billion from last year’s funding, and also the basis for the projected shortfall of Kshs.346 billion in revenue.

Furthermore, the committee Members will review the criteria used to determine the projections before deliberating on how much funding will ultimately be allocated to Counties.

Additionally, the lawmakers agreed to assess historical revenue collection projections over the past decade by the national government along with county performance in collecting revenue from local sources.

The Division of Revenue (Amendment) Bill, 2024, which aims to revise the revenue sharing formula between National and County governments due to lowered revenue forecasts for FY 2024/25 was introduced following the withdrawal of the Finance Bill, 2024.