The Senate is facing mounting criticism after agreeing to a Sh428 billion allocation for county governments in the 2026–27 financial year.
The figure is significantly lower than what senators, governors and independent constitutional bodies had proposed.
The decision, reached after days of mediation between the Senate and the National Assembly, has reignited debate over whether the House mandated to protect devolution is being outmaneuvered in budget negotiations or is structurally weakened by constitutional limitations and executive influence.
The controversy stems from the substantial concessions made by senators during mediation.
The Senate had initially proposed Sh454 billion for counties but eventually settled for Sh428 billion, surrendering Sh26 billion during negotiations.
In contrast, the National Assembly moved only marginally from its original proposal of Sh420 billion, increasing the allocation by just Sh8 billion.
The Council of Governors had proposed Sh534 billion, while the Commission on Revenue Allocation proposed Sh458 billion.
The outcome mirrors a pattern that has emerged in recent years, where senators repeatedly enter mediation demanding higher allocations for counties, only to retreat significantly before a final agreement is reached.
For the current financial year, senators climbed down from Sh465 billion to Sh415 billion, while their counterparts in the National Assembly increased their proposal from Sh405 billion to Sh415 billion.
Critics argue that the trend raises uncomfortable questions about the Senate's effectiveness in defending devolution, one of the pillars of the constitution.
The debate comes at a time when county governments continue to shoulder key functions, including primary healthcare, early childhood education, agricultural extension services, county roads, water provision and sanitation.
Under Article 96 of the constitution, the Senate exists to represent counties and protect their interests.
The House is also tasked with safeguarding devolution and ensuring county governments receive adequate resources to perform their constitutional functions.
Yet despite this constitutional mandate, the Senate's negotiating record is increasingly coming under scrutiny.
The latest compromise was necessary to unlock the Division of Revenue Bill, 2026, legislation that determines how nationally raised revenue is shared between the national and county governments.
Without agreement between the two Houses, the Bill risked collapse under Article 113 of the constitution, which governs mediation.
The constitution is clear that if a mediation committee fails to agree on a version of a Bill within 30 days, or if either House rejects the mediated version, the Bill stands defeated.
Senate Deputy Minority Leader Enoch Wambua defended the compromise, arguing that failure to reach an agreement would have plunged the country into a constitutional and financial crisis.
“If mediation on any Bill collapses, the Bill will have been defeated. There would be no Division of Revenue Act. The ramifications are dire,” Wambua said.
Minority Leader Stewart Madzayo echoed the concerns, warning that defeat of the Bill would have paralysed government operations.
“There would be no salary payments, no roads and no functioning government,” he said.
But even as senators defended the settlement, several lawmakers openly questioned the conduct of the negotiations.
Nairobi Senator Edwin Sifuna opposed the mediated figure, arguing that counties deserved more resources in line with commitments previously made by the government.
Kakamega Senator Boni Khalwale similarly expressed dissatisfaction, questioning how negotiators arrived at the final figure after the Senate had approved a much higher allocation.
The criticism reflects a growing perception among county leaders that the Senate enters mediation from a position of weakness.
Legal experts argue that while the Senate is constitutionally mandated to protect counties, it lacks sufficient leverage over the broader national budget-making process.
Unlike the National Assembly, which controls money Bills and exercises substantial influence over public finance legislation, the Senate's powers remain largely confined to matters affecting counties.
This imbalance often leaves senators negotiating against a House that enjoys stronger constitutional authority over budgetary matters and receives backing from the National Treasury and the Executive.
The latest mediation also exposed concerns about the growing influence of the Executive in revenue-sharing debates.
Mombasa Senator Mohammed Faki accused the National Treasury of exerting undue influence over the process, arguing that the Treasury appears to have an outsized role in determining the final allocation.
“The National Treasury should be an independent institution. The issue of the National Assembly consulting the Treasury on the mediated figure is unacceptable,” he said.
Some senators further argue that county governments are increasingly being squeezed as national government spending and debt obligations take priority.
INSTANT ANALYSIS
The Sh428 billion county allocation exposes a growing crisis of confidence in the Senate's ability to defend devolution.
While senators argue that rejecting the mediated figure would have defeated the Division of Revenue Bill and paralysed government operations, critics see a pattern of costly concessions that weaken counties.
The outcome highlights the Senate's limited influence in budget-making, the National Assembly's dominance in financial matters and the Executive's growing sway over revenue allocation. Ultimately, counties bear the burden through reduced funding for essential services.
