The Senate has opposed the new revenue-sharing formula advanced by the Commission on Revenue Allocation (CRA), which proposes an additional Sh30 billion allocation to counties.
The plan that is set to take effect in the next financial year, would see 31 counties lose over Sh12 billion, while seven counties, mostly in Northern Kenya, would gain an extra Sh7 billion.
During a three-day mid-term review retreat in Naivasha, senators agreed that no county should lose funds under the new revenue formula.
Lawmakers from affected regions strongly opposed the proposal, arguing that it unfairly benefits counties with large landmasses at the expense of more populous areas.