Parliament could be forced to establish a mediation committee if the National Assembly and the Senate fail to agree on the Division of Revenue Bill.

📻 Breaking It Down

NAIROBI, Kenya, May 26 -The National Assembly resumes regular sittings this afternoon, with Members of Parliament set to embark on key budgetary and legislative business expected to shape the country’s fiscal and policy agenda for the 2026/2027 financial year.

Critical on the House agenda will be a debate on the 2026/2027 National Government Budget Estimates through the report of the Budget and Appropriations Committee, a process that will set the stage for consideration of the Appropriation Bill, 2026 and the Finance Bill, 2026.

Lawmakers are also expected to prioritise deliberations on Senate amendments to the Division of Revenue Bill, 2026, and the County Allocation of Revenue Bill, 2026, measures that will determine how revenue is shared between the national and county governments.

📌 What You Need to Know

Parliament could be forced to establish a mediation committee if the National Assembly and the Senate fail to agree on the Division of Revenue Bill, 2026, a crucial piece of legislation that determines the allocation of nationally raised revenue between the two levels of government.

The possibility arises following the Senate’s proposed amendments to the Bill, which the National Assembly must now consider.

Should MPs reject the Senate’s changes, or if the two Houses are unable to reach a consensus on the revenue-sharing formula, the matter would trigger the constitutional dispute resolution mechanism provided for under Article 113 of the Constitution.

Under the process, a mediation committee comprising an equal number of members from both Houses would be formed to negotiate a compromise version of the Bill. The committee would be required to develop an agreed text for consideration by both the National Assembly and the Senate. Failure by the mediation team to secure a deal, or rejection of the mediated version by either House, could see the Bill defeated, potentially complicating the budget-making process for the 2026/2027 financial year.

The stakes remain high as the Division of Revenue Bill is central to unlocking funding flows to county governments, with delays or deadlock likely to heighten tensions over county financing and service delivery.

Among the key legislative proposals before the House is the Finance Bill, 2026, which seeks to amend several tax statutes, including the Income Tax Act, Value Added Tax Act, Excise Duty Act, and the Tax Procedures Act.

📰 Source: Capital FM Kenya