Senators have bowed to pressure from the executive and the parliament to agree to Ksh316 equitable revenue share to the counties.
This comes after a long impasse that threatened to bring down services at the counties, with senators and governors demanding Ksh335 billion.
Addressing journalists outside Senate chambers in Nairobi, Senate Majority leader Kipchumba Murkomen said that the move was to ensure that services continued smoothly at the county level.
MPs had previously approved the allocation of Ksh316 billion to counties, disagreeing with senators and governors forcing the latter to go to the Supreme Court.
Murkomen however said that they would pursue the case to the end, despite changing their stand on the revenue allocation.
The Bill was passed in the National Assembly just two days after the Senate passed its version of the Division of Revenue Bill allocating counties Ksh335 billion.
Governors have accused the National Treasury of ignoring the Commission of Revenue Allocation’s recommendations on the sharing of revenue between the national government and the devolved units.
National Assembly representatives in the mediation committee agreed on Ksh316 billion but the Senate disagreed settling for Ksh327 billion but later pulled an about turn and passed the Ksh335 billion which had been recommended by the Commission on Revenue Allocation (CRA).