A meditation committee of the National Assembly and the Senate has reached a deal on the amount of cash to be allocated counties, ending a three-month stalemate that threaten to halt county operations next month.

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The team agreed to allocate the 47 counties Sh302 billion, striking a middle ground that sets the stage for approval of an amended Division of Revenue Bill.

The Senate on Tuesday rejected the Bill developed by the National Assembly that allocated devolved units Sh291 billion for the next financial year.

The Senators have stuck to the Sh314 billion it proposed in an earlier Bill that collapsed at the first mediation process, throwing County operations into a crisis.

Parliament must first approve the Division of Revenue Bill to pave the way for passage of the County Allocation of Revenue Bill that determines how much each county gets.