Governors have warned of a looming shutdown of county operations, citing the National Treasury’s delay in releasing KES 63.6 billion for October and November 2024 allocations. The Council of Governors (CoG) described the situation as “unacceptable,” highlighting the crippling impact on devolved units if the stalemate persists.
“We call upon the Controller of Budget to stop being a bottleneck in this process and ensure counties access their funds promptly,” the CoG said, urging the Senate to expedite the passage of the County Allocation of Revenue Act to resolve the issue.
CoG Chairperson and Wajir Governor Ahmed Abdullahi emphasized the legal ramifications of the delay. “Failure to release the funds owed to counties will force county governments to cease operations entirely,” Abdullahi warned.
Speaking during a meeting in Nairobi, Abdullahi and other governors expressed concern over the prolonged delay in enacting the County Allocation of Revenue Act (CARA), which has disrupted county operations five months into the financial year. They criticized the National Treasury for violating the law by withholding funds critical for service delivery.
Governors also raised alarms over the National Assembly’s decision to reduce the County Equitable Share by KES 20 billion, stating that it would “severely affect service delivery.” Despite Parliament passing the Division of Revenue Bill, the enactment of CARA remains stalled, leaving counties unable to meet their financial obligations.
The county chiefs further accused the National Government of prioritizing its funding while devolved units languish. They noted that the Supplementary Appropriations Act 2024 was passed, allocating funds to the National Government despite the lack of finalized revenue-sharing legislation.
Governors also flagged pending claims of KES 9.1 billion owed by the defunct National Health Insurance Fund (NHIF), warning that healthcare services in counties are deteriorating due to delayed payments.
