Deadlock in revenue talks as MPs offer counties Sh425bn
Senators reduced their demand to Sh440 billion; the Sh15 billion gap between the two Houses caused a stalemate...
✨ Key Highlights
Mediation talks between Kenya's National Assembly and the Senate over county revenue allocation have hit a deadlock, with the two Houses far apart on the proposed amounts.
- The National Assembly proposes Sh425 billion for counties, a marginal increase from their initial Sh420 billion offer.
- The Senate has reduced its demand from Sh454.7 billion to Sh440 billion.
- The disagreement stems from the Division of Revenue Bill, 2026, which dictates the sharing of national revenue between the national and county governments.
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Deadlock in Revenue Talks as MPs Offer Counties Sh425bn - June 2026
Mediation talks between Kenya's National Assembly and the Senate over county revenue allocation have hit a deadlock, with the two Houses far apart on the proposed amounts. The Senate and National Assembly are nearing a deal on counties' revenue sharing, with key negotiations centering on a provision to protect devolved units from sudden funding cuts. In related developments, Kilifi residents have voiced strong opposition to several tax proposals within the Finance Bill 2026, particularly those impacting digital services and mobile devices, during public participation hearings. Meanwhile, the Kenya Association of Manufacturers is warning that proposed tax changes in the Finance Bill 2026 could significantly increase the cost of essential products like electric motorcycles and mobile phones.
