By Ebi Kesiena
Kenya’s Council of Governors (COG) has issued a stern warning of a potential nationwide shutdown of county operations if Parliament fails to resolve the deadlock over revenue allocation.
The prolonged delay in passing the County Allocation of Revenue Act (CARA) and disbursing funds to devolved units has raised concerns about imminent service disruptions and financial collapse at the county level.
In a statement issued after an extraordinary meeting, COG Chairperson Ahmed Abdullahi highlighted the strain on county governments, which have been forced to rely on a temporary measure allocating 50% of last year’s equitable share.
This interim arrangement will expire in December 2024, leaving counties without funding from January 2025. Abdullahi disclosed that the National Treasury has yet to release Ksh63.6 billion for October and November allocations, compounding the crisis.
“We note with great concern the delays by the Controller of Budget in approving requisitions for the withdrawal of funds,” Abdullahi said, adding that the situation is creating uncertainty in service delivery and operations.
The financial impasse has also been worsened by disagreements between the National Assembly and the Senate over equitable revenue sharing. While the National Treasury proposed allocating Sh380 billion to counties, citing fiscal deficits and challenges tied to the withdrawal of the Finance Bill 2024, lawmakers remain locked in mediation over the revised Division of Revenue Bill 2024.
Despite being passed by Parliament five months ago, the County Allocation of Revenue Bill awaits presidential assent, further delaying much-needed funds. The governors are now urging swift action to avert a financial meltdown, warning that counties will be unable to function unless the funds are disbursed promptly.
