In a quick rebuttal, the Treasury insisted it owes counties no pending funds except for the November allocation. “As of October 18, 2024, the National Treasury has fully disbursed funds to county governments, up to date with all payments except for the current month of November,” read a statement from the ministry
Governors have issued a stark warning to the government, threatening to paralyze county operations within 30 days if the National Treasury does not release the Ksh 63.6 billion owed to them for October and November 2024.
Speaking under the banner of the Council of Governors (CoG), the county chiefs cautioned that without the disbursement of funds, the 47 devolved units will run out of resources by December. This, they said, will halt essential services and disrupt operations critical to local economies.
“We demand that the National Treasury immediately releases the funds owed to counties, failure to which County Governments will have no choice but to shut down operations completely,” said CoG Chairperson Ahmed Abdullahi.
The CoG accused the Treasury of failing to disburse funds allocated for October and November. The council further decried delays by the Controller of Budget in approving county requisitions, labelling the process a “bottleneck” that is undermining devolution. In a quick rebuttal, the Treasury insisted it owes counties no pending funds except for the November allocation. “As of October 18, 2024, the National Treasury has fully disbursed funds to county governments, up to date with all payments except for the current month of November,” read a statement from the ministry.
However, the CoG argued that counties are already grappling with a budget shortfall exacerbated by the National Assembly’s decision to slash the County Equitable Share by Ksh 20 billion.
“Any reduction to County Equitable Share will negatively affect service delivery and grind the counties to a halt considering the allocated Ksh 400.117 billion is based on historical audited accounts,” said Abdullahi, calling the changes to the Division of Revenue Act unconstitutional.
Raila Odinga Weighs In
Opposition leader Raila Odinga has also entered the fray, accusing Members of Parliament of prioritizing the National Government Constituency Development Fund (NGCDF) and the Government Affirmative Action Fund (NGAAF) over counties. “These funds give MPs the power to conceive, implement, and oversee projects simultaneously, an affront to constitutional principles,” Raila said. He further alleged that the current impasse over the Division of Revenue Amendment Bill is part of a larger power grab by legislators.
Raila warned MPs against what he described as the “abrogation of the Constitution,” urging them to focus on their oversight role instead of engaging in project implementation.
The ongoing standoff has left counties unable to settle critical debts, including Ksh 9.1 billion owed to the Social Health Authority (SHA) by the defunct NHIF. This debt has strained counties’ ability to pay vendors and provide healthcare services effectively.
Governors warned that further delays in disbursements would not only cripple counties’ service delivery but also undermine the gains made under the devolution framework.
“We call upon all stakeholders and friends of devolution to remain vigilant and join us in safeguarding the welfare of Kenyans and the integrity of our Constitution. Devolution is a cornerstone of our governance and must be protected at all costs,” Abdullahi said.
With the Senate and National Assembly locked in a stalemate over the Division of Revenue Bill, the CoG urged Parliament to expedite the County Allocation of Revenue Act to resolve the impasse.
For now, counties remain in financial limbo, their leaders adamant that devolution must not be starved of resources as they brace for a potentially crippling shutdown.
