By The Weekly Vision Reporter
A storm is brewing between Kenya’s 47 county governments and the National Treasury over delayed disbursement of funds, which has pushed pending bills to an alarming KSh173 billion as of March 2025. The Council of Governors (CoG) has blamed the Treasury for stifling devolution and strangling development at the grassroots.
Nairobi County is the most affected, accounting for KSh116 billion, or 70 per cent of the total amount owed by devolved units, highlighting the depth of the fiscal crisis facing counties.
CoG Chairman and Wajir Governor Ahmed Abdullahi, speaking during the State of Devolution address for the 2024/2025 financial year, linked the ballooning debt directly to delays in the release of funds by the National Treasury.
“The persistence of high pending bills was mainly attributed to delays in disbursement of funds by the National Treasury,” he said.
The CoG has held five consultative meetings to address a series of grievances, including the clawback of devolved funds, unconstitutional financial interference, fund diversion, and chronic disbursement delays. In response, the governors formed an eight-member committee to engage the Treasury on the immediate release of funds under the County Governments Additional Allocations Act, 2025.
The committee is also tasked with pushing Parliament for an equitable share of the Road Maintenance Levy Fund (RMLF) following a High Court ruling directing the allocation of KSh10.5 billion to county governments.
Last October, former CoG chairperson and Kirinyaga Governor Anne Waiguru similarly accused the Treasury of failing to remit KSh30.8 billion in equitable share for the 2023/2024 financial year. She also revealed that counties had been denied KSh7 billion in conditional grants, including:
- KSh3.3 billion for County Aggregation and Industrial Parks
- KSh2.93 billion for mineral royalties
- KSh454 million for the construction of the county headquarters
- For the current financial year, counties had projected total spending of KSh600.69 billion, with:
- KSh222.2 billion (37%) allocated to development
- KSh379 billion for recurrent expenditure
The main revenue sources were:
- KSh418.3 billion from the equitable share
- KSh66.4 billion in additional allocations
- KSh29 billion from balances in special-purpose accounts
- KSh87.11 billion expected from own-source revenue (OSR)
So far, the National Government has disbursed KSh400 billion as an equitable share and an additional KSh16.27 billion from development partners. Counties have cumulatively raised KSh46 billion in OSR, representing 53 per cent of their annual target, a notable 11 per cent improvement from the previous year. Counties such as Tana River, Garissa, and Narok have performed particularly well, with Tana River exceeding its target by 72 per cent.
Abdullahi noted that 226,434 healthcare workers currently serve across the country, 149,447 of whom are in public hospitals. The workforce includes:
- 34,220 nurses
- 4,651 doctors
- 7,877 clinical officers
- 4,686 laboratory technicians
- 1,942 nutritionists
The CoG is now lobbying for KSh7.8 billion annually to transition 8,287 staff supporting the Universal Health Coverage (UHC) programme to county payrolls under terms approved by the Salaries and Remuneration Commission.
In the 2024/2025 financial year, public hospitals received KSh12.7 billion out of KSh35.66 billion disbursed under the Kenya Kwanza government’s Social Health Authority. Notably, 48.8 per cent of the funds went to private hospitals, while faith-based facilities received 15.6 per cent.
Health indicators were mixed. Antenatal care coverage dropped to 53.82 per cent, though skilled birth attendance remained high at 89 per cent. Neonatal mortality improved slightly, falling from 10 to 9 deaths per 1,000 live births, while modern contraceptive prevalence remained steady at 58.7 per cent.
Agricultural performance slowed, with Gross Value Added (GVA) falling from 7.1 per cent in 2023/24 to 4.4 per cent in 2024/25. The sector suffered an estimated KSh20 billion loss due to declining maize output and a dip in horticulture exports.
However, the livestock and crop subsectors recorded modest growth:
- Livestock earnings rose by 17.2 per cent
- Crop earnings grew by 2.7 per cent
- Gains were noted in sugarcane, milk, coffee, and avocado production
Investments in farm mechanisation and animal health improved significantly, with an expanded tractor fleet and nearly double the number of livestock vaccinations. Artificial insemination services and milk cooling infrastructure also saw substantial upgrades.
In a sign of maturing devolution, 11 new municipalities were granted charters, increasing the national total to 118. Each municipality has begun establishing governance structures to manage urban services and infrastructure. Counties have transferred specific functions to cities and municipalities to boost service efficiency and accountability.
On urban planning, 64 out of 77 assessed municipalities approved their land use and spatial plans, while 73 completed Integrated Development Plans (IDPs) to guide future development.
The CoG commended the judiciary for rulings that have bolstered devolution. Notably, the High Court:
- Declared the National Government Constituencies Development Fund (NGCDF) Act unconstitutional for violating the principles of devolution and separation of powers
- Ruled the exclusion of counties from the Road Maintenance Levy Fund as unconstitutional
“These judgments reinforce the need for equitable sharing of resources and affirm the constitutional autonomy of counties,” said Abdullahi.
