The compromise was reached after seven mediation meetings and included the reinstatement of Clause 5, a safeguard designed to protect county allocations from arbitrary cuts linked to national revenue shortfalls.
TANDAO MEDIA NEWS

After weeks of tense negotiations, the Mediation Committee on the Division of Revenue Bill, 2026 has struck a breakthrough agreement, settling on an equitable share allocation of Ksh 428 billion for County Governments. The deal ends a standoff between the National Assembly and the Senate, unlocking funds critical for devolution.
The compromise was reached after seven mediation meetings and included the reinstatement of Clause 5, a safeguard designed to protect county allocations from arbitrary cuts linked to national revenue shortfalls.Announcing the outcome, co‑chairperson and Budget and Appropriations Committee Chair Samuel Atandi hailed the settlement as a constitutional milestone.
“We have settled on Ksh 428 billion. This is a constitutional imperative and Kenyans are going to be happy,” said Atandi.
Senate Finance and Budget Committee Chair Ali Roba described the talks as “difficult but cordial,” emphasizing the urgency of finalizing the Division of Revenue Bill to pave the way for the County Allocation of Revenue Bill and timely disbursement schedules. He urged counties to dedicate part of the funds to clearing pending bills.Lawmakers across both Houses welcomed the deal as a victory for devolution and fiscal responsibility. Hon. Japheth Nyakundi and Hon. Christopher Aseka noted that adequate resources were essential for both national and county programmes.
Senators also weighed in on accountability. Ledama Olekina supported the settlement but pressed for guarantees that counties would receive the full allocation, while Eddy Oketch stressed the need for stronger oversight to prevent misappropriation. Mohammed Faki added that conditional allocations and Equalisation Fund arrears must also be addressed to stabilize county operations.
The agreement now clears the way for the Budget and Appropriations Committee in the National Assembly and the Senate Finance and Budget Committee to table reports in their respective Houses for consideration.