Lawmakers have agreed to allocate Sh387 billion to counties for the 2024/2025 financial year after mediation by a joint committee of the National Assembly and Senate.
Co-chaired by Ndindi Nyoro and Senator Ali Roba, the committee raised the allocation by Sh2 billion, citing economic challenges.
The National Assembly had approved Sh380 billion, aligning with the Treasury’s proposal, while senators had pushed for Sh400 billion, arguing counties face operational shortfalls.
MP Nyoro, who co-chairs the committee, insisted that the Executive had a primary role in the budget-making process, alluding that the final consensus on the matter requires keen consideration of the President’s input.
“We are facing reality as it is without sugarcoating.As much as we have willingness in terms if giving counties more funds. We have scarcity in terms of revenue shortfall,” the joint committee said.
“Out of our deliberation,the hard negotiations and zooming in on data,we have reinstated the last financial year allocation at Sh385 billion and added an additional Sh2 billion to make it Sh387 billion,” said Nyoro.
Earlier on, Nairobi Senator Edwin Sifuna had called for the dissolution of Parliament if key decisions were to be made by the Executive at State House.
The Nairobi senator criticized Parliament for ceding powers to other state organs, stressing that the National Treasury Cabinet Secretary, John Mbadi, should not dictate the county government funds.
The next hurdle for legislators in both houses is to push for the disbursement of Sh387 billion to counties will require MPs to marshal two-third of both houses to amend the Division of Revenue Bill 2024.
Senate will also require more than forty-five senators to amend the County Allocation Revenue Bill which allocates revenue from the national government to county governments with the changes.