Parliament has finally reached an agreement to release Ksh70.6 billion in additional allocations to counties, ending months of wrangling between the National Assembly and the Senate that had delayed crucial services and stalled development projects across the country.
The funds, earmarked for the 2025/26 financial year, are expected to ease severe cash flow challenges in county governments and revive projects that had been paralysed by the prolonged budget impasse.
The breakthrough came after senators agreed to adopt the National Assembly’s amendments to the County Governments Additional Allocation Bill, 2025, paving the way for the disbursement of both conditional and unconditional grants to the 47 devolved units.
The Senate Finance and Budget Committee urged members to support the compromise, saying service delivery must come first.
“For the sake of our people and service delivery in the 47 counties, we agreed to adopt the amendments proposed by the National Assembly,” said Nominated Senator Tabitha Mutinda, the committee’s vice chairperson.
The standoff had centred on the size of the additional allocation, with senators pushing for Ksh93.5 billion while MPs insisted on capping it at Ksh70.6 billion. A major point of contention the Ksh23.64 billion Roads Maintenance Levy Fund remains in court, pending a ruling on whether it should be managed by the national or county governments.
Migori Senator Eddy Oketch called on colleagues to back the agreement, saying continued delays would worsen the crisis in counties. “This is not about giving up. We are allowing the court process to continue while ensuring counties get funds to keep services running,” he said.
Under the approved amendments, counties that have made significant progress in establishing County Aggregation and Industrial Parks (CAIPs) will receive their remaining balance of funds, ensuring that ongoing projects continue without disruption.
At least 16 counties have already begun implementing CAIPs, each receiving Ksh250 million from the national government. However, five counties Isiolo, Lamu, Nyandarua, Tana River, and Tharaka Nithi will see their allocations reduced slightly due to delays in completing county headquarters.
Meanwhile, Parliament increased funding for two national development programmes: the Kenya Devolution Support Programme from Ksh1.76 billion to Ksh3.43 billion, and the Kenya Informal Settlement Improvement Project from Ksh1 billion to Ksh2.5 billion.
Despite supporting the deal, several senators voiced concern over what they termed as interference by the National Assembly in county matters.
Machakos Senator Agnes Kavindu said, “The National Assembly has no right to deduct monies allocated to counties. They should respect the Senate’s role in protecting devolution.”
Nairobi Senator Edwin Sifuna accused MPs of intimidation, saying the Senate should not yield to pressure from the lower House.
Nominated Senator Catherine Mumma urged the government to establish a clear formula for timely disbursement of funds, warning that recurrent delays continue to undermine service delivery and weaken devolution.
The deal now paves the way for the National Treasury to release funds to all 47 counties, bringing long-awaited relief to county workers, stalled projects, and local communities awaiting services.
