A Mediation Committee, comprised of members from the National Assembly’s Budget and Appropriations Committee and the Senate’s Committee on Finance and Budget, is set to begin deliberations over a dispute on revenue allocation amendments.
The mediation was triggered following the National Assembly’s rejection of the Senate’s amendments to the Division of Revenue Bill on October 16, 2024.
While the Senate insisted on a Kshs. 400.12 billion allocation for counties, the National Assembly proposed adjustments reflecting a downward revision in projected ordinary revenue collection for the 2024/25 financial year.
The amendment to the Division of Revenue Act, 2024, is necessary to address a projected Kshs. 346 billion shortfall, a gap attributed to the delayed enactment of the Finance Bill, 2024.
The proposed distribution of the shortfall would place Kshs. 325.88 billion on the National Government and reduce the County Equitable Share by Kshs. 20.12 billion.
Under the revised allocations, the National Government’s budget would decrease to Kshs. 2.214 trillion from Kshs. 2.540 trillion, while county funding would be cut to Kshs. 380 billion from the originally proposed Kshs. 400.117 billion.
The Mediation Committee members, appointed by the Speaker of the National Assembly Moses Wetangula on October 18, 2024, include:
- Hon. Ndindi Nyoro
- Hon. Mary Emaase
- Hon. (Dr.) John Chikati
- Hon. David Ochieng
- Hon. David Kiplagat
- Hon. (Dr.) Otiende Amollo
- Hon. Fatuma Jehow
- Hon. (Dr.) Makali Mulu
- Hon. (Dr.) Ojiambo Oundo
This committee will work to find a compromise on the contested bill, aiming to balance the financial needs of both national and county governments amidst revenue shortfalls.
