In a significant move for county governments, lawmakers have agreed to allocate KES 387 billion for the Financial Year 2024/2025, marking an increase of KES 2 billion from the previous year. This decision follows extensive deliberations by an 18-member mediation committee, co-chaired by Kiharu MP Ndindi Nyoro and Mandera Senator Ali Roba.
The committee cited the challenging economic conditions faced by counties as the key reason for the increment. Nyoro highlighted that factors such as revenue performance, inflation, and rising operational costs for devolved units were central to the decision. “We are facing the reality as it is, without sugarcoating. While we are willing to allocate more funds to counties, revenue shortfalls present significant challenges,” the committee stated.
The agreement was reached after a tense standoff between the Senate and the National Assembly, which had differing views on the allocation. The Senate had initially called for KES 400.1 billion, while the National Assembly insisted on KES 380 billion. This disagreement had the potential to disrupt county operations and stalled critical funding for various services.
After tough negotiations, the mediation committee decided to reinstate last year’s allocation of KES 385 billion, adding an additional KES 2 billion to reach the final figure of KES 387 billion. “After thorough deliberations and hard negotiations, we reinstated last year’s allocation and added an additional KES 2 billion,” Nyoro explained.
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The talks also featured criticism from Nairobi Senator Edwin Sifuna, who opposed the Treasury Cabinet Secretary’s involvement in the final decision-making process. “We as parliament should not be the ones ceding the power that is vested in parliament to other organs of state,” Sifuna stated.
Despite the challenges, Treasury Cabinet Secretary John Mbadi played a pivotal role in urging governors to accept the National Assembly’s proposal, acknowledging that the economy could not support the Senate’s proposed KES 400 billion. The final agreement aims to balance the financial needs of county governments with the country’s fiscal constraints,.
