Senators in Kenya have reached a deal that resolves a lengthy standoff over the formula of how to divide the money earmarked for the country's 47 counties.

The deal comes just a day after county governors agreed to suspend all but critical services after the stand-off delayed the disbursement of cash to pay salaries to workers across the country.

It follows the intervention by President Uhuru Kenyatta on Tuesday who promised that the country’s exchequer will increase allocation to the counties from the current $2.9bn (£2.2bn) to approximately $3.4bn in the next financial year.

The formula was passed by the senate on Thursday afternoon, bringing to an end months of deadlock between counties, the senate and the national government which refused to release funds to the devolved units until a formula is passed.