Treasury and Governors Clash Over Stalled Funds, Threatening County Services
A high-stakes standoff is brewing between the Council of Governors (CoG) and the National Treasury over the delayed disbursement of billions of shillings in equitable shareable revenue. County bosses, under the leadership of CoG Chair Anne Waiguru, have issued a stern 14-day ultimatum to Treasury Cabinet Secretary Njuguna Ndung’u, warning that critical services from healthcare to road maintenance are on the verge of collapse. The governors allege that the Treasury is in breach of the Public Finance Management Act for failing to transfer funds for the current quarter, leaving devolved units unable to settle bills and pay staff salaries.
The dispute centers on the release of KSh 94 billion earmarked for the counties for the July-September quarter. While the Treasury has cited technical hitches in its integrated financial management system, governors remain skeptical, accusing the national government of using the delays as a political tool to undermine devolution. This is not the first time. We have seen a pattern where disbursements are delayed, crippling our operations and then the blame is placed on opaque system failures, stated Kirinyaga Governor Anne Waiguru during a press briefing at the CoG headquarters in Nairobi. The meeting was attended by a majority of the 47 governors, showcasing a rare unified front across party lines.
The impact is already being felt on the ground. Several county hospitals have reported severe shortages of essential drugs and non-pharmaceutical supplies, with some resorting to asking patients to purchase their own gloves and syringes. We are facing a humanitarian crisis. How do we run a maternity ward without basic supplies? The national government must stop holding healthcare hostage, lamented a medical superintendent from a county in Western Kenya who sought anonymity for fear of reprisal. The Kenya National Union of Nurses (KNUN) has also issued a strike notice, citing unpaid June salaries for their members in at least ten counties.
The resolution of this impasse is critical for the stability of devolved governance. If the Treasury fails to act within the two-week window, governors have vowed to seek immediate court intervention and mobilize public support against what they term the sabotage of devolution. Political analysts warn that prolonged underfunding could reverse the gains made since the inception of the county system. The coming days will test the commitment of both levels of government to cooperative governance, with the welfare of millions of Kenyans hanging in the balance.