Broke Governors to Shut Down Counties in 30 Days Over Cash Delays

BY REUBEN MUSONIK, POLITICAL EDITOR

Kenya’s devolved units are teetering on the brink of shutdown as county governors, many of who steal the respources entrusted to them, escalate their warnings over delayed disbursements from the National Treasury. At the heart of the dispute lies the national government’s failure to release KSh 63.6 billion in equitable share funds, five months into the current fiscal year. Governors have issued a 30-day ultimatum, threatening to halt all county operations if Parliament and Treasury fail to act swiftly. It is believed that although they have used the demand for suervices as the excuse, many of these governor sare beneficiaries of the projects they undertake through shady companies and proxies.

A Looming Crisis

The Council of Governors (CoG) has accused the national government of crippling devolution by neglecting counties’ financial needs. This delay, they argue, has derailed essential services such as healthcare, education, and agriculture. Salary arrears for county workers, including medical personnel, have further compounded the crisis, with unions threatening strikes if their demands remain unmet.

Governors have also criticized the National Assembly’s decision to cut counties’ equitable share by KSh 20 billion, which they say will disproportionately affect ordinary Kenyans. The stalemate over bills like the Division of Revenue Amendment Bill 2024 and the County Allocation of Revenue Bill has only deepened the financial crisis, leaving counties unable to function effectively.

Governors Speak Out

Ahmed Abdullahi, the CoG chair, expressed frustration over the situation, stating that the government has already exhausted 50% of interim funding. From January 2025, counties may receive no additional funds unless action is taken. Similar sentiments were echoed by Kakamega Governor Fernandes Barasa, who warned that devolution’s survival is at risk due to persistent cash-flow problems.

Mounting Debts

The crisis has been exacerbated by outstanding debts, including KSh 9.1 billion owed by the National Health Insurance Fund (NHIF) to county hospitals. This has placed significant strain on healthcare services, as counties struggle to maintain operations amid a financial crunch.

Past Warnings and Current Implications

This is not the first time governors have raised alarms about delayed funding. Similar threats were made in 2023 when counties faced delays in disbursements for months. However, this time the stakes are higher, with critical public services and workers’ livelihoods hanging in the balance.

Call for Immediate Action

Governors have urged Parliament to expedite legislative processes and for the Treasury to release the pending funds without delay. They also advocate for the implementation of long-term solutions to prevent future crises. Meanwhile, the public anxiously awaits a resolution as fears of service disruptions grow.

The situation reflects the broader struggles of devolution in Kenya, highlighting the need for robust financial management and accountability within both the national and county governments​.