Nairobi — The Senate Standing Committee on Finance and Budget has tabled proposals to the Division of Revenue Bill, 2026 that would require the national government to solely bear any revenue shortfall recorded during the 2026/27 financial year.

The amendment, appearing on the Senate Order Paper ahead of Tuesday's sitting, introduces a new clause specifying that county allocations should not be reduced if revenues collected nationally fall below projections.

The amendment grants the national government exclusive access to any surplus revenues collected above projected levels, with the funds earmarked for debt reduction or borrowing cuts.

Theommittee has also proposed a revised allocation framework that would give counties Ksh 454.74 billion as equitable share revenue, equivalent to 22.2 per cent of audited revenues from the 2022/23 financial year.

Meanwhile, the national government would retain Ksh 2.437 trillion out of the total sharable revenue of Ksh 2.902 trillion.

The Equalisation Fund would receive Ksh 10.25 billion.

The amendments are likely to intensify ongoing negotiations between the Senate, the National Assembly and county governments over the division of nationally raised revenue amid increasing fiscal pressure and concerns over the sustainability of public debt.

Senators are expected to debate the proposals during the Committee of the Whole House on Tuesday.