A long-running budget standoff between the National Assembly and Senate has come to a close, offering long-awaited relief to county governments that have been operating under financial strain.
Legislators have now agreed to release Sh70.6 billion in extra allocations for the 2025/26 financial year, clearing the way for stalled county programmes to restart and easing concerns from governors over halted development plans and pending obligations.
The truce ends weeks of pressure between the two Houses over how much money devolved units should receive and which grants should be included.
Senators had pushed to allocate Sh93.5 billion, arguing counties needed more to deliver services, while MPs defended a Sh70.6 billion ceiling. Much of the disagreement revolved around control of the Roads Maintenance Levy Fund worth Sh23.64 billion, which remains tied up in court as judges determine whether the national government or counties should administer it.
To avoid further delay, both sides have now agreed to let the court process continue while passing the County Governments Additional Allocation Bill, 2025, as amended by the National Assembly.
The Senate Finance and Budget Committee advised senators to support the amended Bill so that money can flow to counties without further setbacks.
Nominated Senator Tabitha Mutinda urged her colleagues to put counties first and approve the deal. “For the sake of our counties and the services our people depend on, we agreed to adopt the National Assembly’s amendments,” she said.
“I urge colleagues to vote ‘yes’ so that we can close this matter in the current financial year. Any deficiencies can be addressed in the next cycle.”
Migori Senator Eddy Oketch backed the move, saying counties could not afford more delays and calling the Roads Levy issue a small part of a bigger agenda.
“Let me be clear — this is not a sign of giving up on the RMLF issue,” he said. “We will continue pursuing it once the court rules. For now, both Houses agreed that we should allow due process to take its course.”
As part of the deal, MPs directed that counties with County Aggregation and Industrial Parks already beyond the halfway mark will continue receiving their full funding so they can complete the work instead of spreading the money to other regions. Sixteen counties have already begun implementing the initiative, with each set to receive Sh250 million.
The National Assembly also trimmed allocations for counties still building headquarters — Isiolo, Lamu, Nyandarua, Tana River and Tharaka Nithi — by Sh1 million each. The adjustment lowers the allocation total to Sh449 million, meaning Isiolo will get Sh59 million while Lamu, Nyandarua and Tana River receive Sh120 million each, and Tharaka Nithi secures Sh30 million.
Other programmes saw a boost. The Kenya Devolution Support Programme will now receive Sh3.43 billion, almost double its earlier allocation, with the aim of strengthening county capacity and governance.
In addition, funding for the Kenya Informal Settlement Improvement Project rose from Sh1 billion to Sh2.5 billion to enhance living conditions in low-income areas and expand urban upgrades.
Even as senators backed the agreement, some raised concern over what they described as repeated interference by the National Assembly in county matters.
Machakos Senator Agnes Kavindu criticised the lower House for adjusting funds that had already passed through the Senate. “While I support this motion, the National Assembly has no right to deduct funds allocated to counties,” she said.
“They do not deal directly with counties. Matters concerning counties should be left to us.”
Nominated Senator Catherine Mumma also called for clear guidelines to prevent future tussles over county funding.
“These are ring-fenced funds. They should not be a source of endless argument,” she said. “We need a clear formula to avoid delays that hurt service delivery.”
Nairobi Senator Edwin Sifuna took aim at the National Assembly, accusing it of using budget delays to weaken county governments. “The National Assembly has made a habit of holding counties hostage,” he said.
“We must not capitulate out of fear that governors won’t get their money. We should ask ourselves — what would Raila Odinga say about a Bill that slashes county allocations from Sh93 billion to Sh70 billion? He would call it what it is — ‘takataka’.”
