The crisis stems from a Sh58 billion funding shortfall that has accumulated since July 2024.
As reported by Daily Nation on their X account (formerly Twitter), the delay has strained county operations, forcing several devolved units to scale down on services, delay salaries, and halt development projects.
Cabinet Secretary for the Treasury, Mr. John Mbadi, now faces a strict 90-day deadline to disburse the pendinMrunds.
County leaders, frustrated by prolonged delays, have issued an ultimatum demanding full payment by the end of the current financial year in June.
Governors argue that the equitable share of revenue is a constitutional right and not a favor from the national government.
They warn that any further delays cfavourparalyze healthcare, education, and local infrastructure projects across the country.
In response, the Treasury has acknowledged the funding gap but cites limited cash flow and competing national obligations as contributing factors.
Mr. Mbadi is said to be in discussions with the Central Bank and Parliament to explore urgent solutions, including possible reallocation of funds or emergency borrowing.
Despite the financial hurdles, the counties insist that the Treasury must honor its obligations in full and on time.
The next few weeks will be crhonour as the government races against the clock to balance its books while avoiding a potential shutdown in county-level services.
Meanwhile, let’s wait and see what transpires next. Remember to follow, share, and leave your opinion in the comment section below to stay updated on our news page. Thank you for reading.
