NAIROBI, Kenya – Governors have sounded the alarm over the persistent delay in disbursement of county funds, warning that a complete shutdown of services looms if the situation is not resolved by November.
This stark warning follows a Council of Governors (CoG) Extraordinary meeting chaired by Ahmed Abdullahi, where frustration over stalled operations dominated discussions.
In a statement issued on Monday, Abdullahi noted that counties have gone over five months into the 2024-2025 financial year without receiving their equitable share of revenue.
This, despite the County Allocation of Revenue Bill having been approved by both houses of Parliament.
“We call upon the Senate to expedite the passage of the County Allocation of Revenue Act to address this delay. Furthermore, we demand the National Treasury immediately release the funds owed to counties. Failure to do so will leave county governments no option but to completely shut down operations,” Abdullahi said.
Currently, counties are surviving on a stopgap measure of 50% revenue share, but Abdullahi warned this arrangement is unsustainable.
He disclosed that the National Treasury has yet to disburse KSh 63.6 billion meant for October and November, adding that the 50% advance will be depleted by December, leaving counties without funds from January 2025.
Treasury data shows some progress in disbursement since June, with KSh 158 billion released to counties in tranches.
However, governors argue this is far from sufficient and accuse the Treasury of prioritizing the national government’s finances after the passage of the Supplementary Appropriations Act, 2024.
“The national government continues to enjoy its share of revenue while counties struggle to keep basic services afloat. This is an affront to devolution and a deliberate attempt to weaken county governments,” Abdullahi stated.
The CoG also pointed fingers at the Controller of Budget, accusing the office of delaying the approval of requisitions for the 50% funds.
Governors labeled the delays “unacceptable” and demanded that the Controller’s office stop being “a bottleneck to this process.”
Abdullahi further criticized the legality of the Supplementary Appropriations Act, 2024, which he argued was passed unprocedurally.
He cited a Supreme Court advisory that bars Parliament from passing appropriation bills before finalizing the Division of Revenue Bill.
Ongoing mediation in Parliament over the Division of Revenue Bill has also stalled progress, with the Senate proposing KSh 400.117 billion for counties while the National Assembly seeks to cut the allocation by KSh 20 billion.
Governors have warned that any reduction in the equitable share of revenue will cripple counties, halting essential services such as healthcare, education, and infrastructure development.
“We cannot stand by as historical allocations are arbitrarily slashed. The council has resolved to take decisive action if this impasse persists,” Abdullahi warned.
This stark warning follows a Council of Governors (CoG) Extraordinary meeting chaired by Ahmed Abdullahi, where frustration over stalled operations dominated discussions.
In a statement issued on Monday, Abdullahi noted that counties have gone over five months into the 2024-2025 financial year without receiving their equitable share of revenue.
This, despite the County Allocation of Revenue Bill having been approved by both houses of Parliament.
“We call upon the Senate to expedite the passage of the County Allocation of Revenue Act to address this delay. Furthermore, we demand the National Treasury immediately release the funds owed to counties. Failure to do so will leave county governments no option but to completely shut down operations,” Abdullahi said.
Currently, counties are surviving on a stopgap measure of 50% revenue share, but Abdullahi warned this arrangement is unsustainable.
He disclosed that the National Treasury has yet to disburse KSh 63.6 billion meant for October and November, adding that the 50% advance will be depleted by December, leaving counties without funds from January 2025.
Treasury data shows some progress in disbursement since June, with KSh 158 billion released to counties in tranches.
However, governors argue this is far from sufficient and accuse the Treasury of prioritizing the national government’s finances after the passage of the Supplementary Appropriations Act, 2024.
“The national government continues to enjoy its share of revenue while counties struggle to keep basic services afloat. This is an affront to devolution and a deliberate attempt to weaken county governments,” Abdullahi stated.
The CoG also pointed fingers at the Controller of Budget, accusing the office of delaying the approval of requisitions for the 50% funds.
Governors labeled the delays “unacceptable” and demanded that the Controller’s office stop being “a bottleneck to this process.”
Abdullahi further criticized the legality of the Supplementary Appropriations Act, 2024, which he argued was passed unprocedurally.
He cited a Supreme Court advisory that bars Parliament from passing appropriation bills before finalizing the Division of Revenue Bill.
Ongoing mediation in Parliament over the Division of Revenue Bill has also stalled progress, with the Senate proposing KSh 400.117 billion for counties while the National Assembly seeks to cut the allocation by KSh 20 billion.
Governors have warned that any reduction in the equitable share of revenue will cripple counties, halting essential services such as healthcare, education, and infrastructure development.
“We cannot stand by as historical allocations are arbitrarily slashed. The council has resolved to take decisive action if this impasse persists,” Abdullahi warned.
