The Mediation Committee on the Division of Revenue (Amendment) Bill, 2024 has unanimously agreed to allocate Ksh. 387 billion to County Governments. The decision came after extensive deliberations over three days, following earlier meetings that failed to reach a consensus.

The Committee, co-chaired by Mandera Senator Ali Roba and Kiharu MP Hon. Ndindi Nyoro, announced the agreement as a balance between the fiscal constraints of the National Government and the operational demands of the Counties.

“I want to commend all Members of the committee. This mediation team has proven to be great supporters of devolution. We cannot afford to allocate less money to Counties than we did last year,” said Hon. Nyoro. 

He assured Kenyans that Parliament would expedite the processing of the Bill to ensure Counties continue operating smoothly.

Senator Roba emphasized the unique nature of this financial year, citing the withdrawal of the Finance Bill 2024/2025 as a key factor in the mediated position. 

“We recognize that this year is extraordinary. While Counties might have higher expectations, we must face the fiscal realities at hand,” he explained.

Committee members, including Senators Veronica Maina, Edwin Sifuna, Eddy Oketch, Wahome Wamatinga, Mohamed Faki, Richard Onyonka, Danson Mungatana and National Assembly members Hon. Makali Mulu, Hon. Oundo Ojiambo, Hon. David Kiplagat and Hon. Fatuma Jehow endorsed the resolution. They urged County Governments to use the funds prudently to deliver tangible benefits to Kenyans.

“Counties must curb wastages and eliminate corruption to ensure meaningful progress,” said Hon. Kiplagat. 

This sentiment was echoed by Funyula MP Oundo Ojiambo and Senators Wamatinga and Sifuna, who called for austerity measures and the clearance of pending bills that have hindered economic growth.

In addition to approving the allocation, the lawmakers resolved that any shortfall in revenue collection would be absorbed by the National Government going forward. 

“The National Treasury must be realistic in its revenue projections and take full responsibility for any shortfalls. This will prevent Counties from being underfunded,” declared Hon. Nyoro.

The decision marks a critical step in ensuring financial stability and continued service delivery at the county level. However, the Committee called for prudent fund utilization and corruption elimination underscores the committee’s commitment to accountability and economic growth.