(Nairobi) – The Council of Governors has warned that county services could shut down if delayed revenue disbursements are not resolved by the end of November, despite claims from the National Treasury that they have paid over K Sh158 billion since June.
Governors across the country have issued a stark warning about the potential for a complete shutdown of county services if the ongoing delays in the disbursement of sharable revenue continue beyond November. Council of Governors (CoG) Chairperson Ahmed Abdullahi stated that counties have yet to receive their equitable share of funds for more than five months into the 2024-2025 financial year, despite the passage of the County Allocation of Revenue Bill in Parliament.
In a statement released on Monday, Abdullahi called for the Senate to urgently pass the County Allocation of Revenue Act (CARA) to resolve the delay. He also demanded that the National Treasury immediately release the funds owed to counties, warning that if the funds are not released, county governments will have no option but to halt operations.
“Counties have been relying on a temporary 50% revenue share from the national government, but this stopgap measure is unsustainable,” Abdullahi explained. He noted that this temporary allocation would be exhausted by December 2024, and without full funding, counties would be unable to operate beyond January 2025.
The Council of Governors made these remarks after holding an Extra Ordinary meeting to address the issue. Abdullahi pointed out that, while counties are waiting for their equitable share, the national government has been able to enjoy its share of the revenue, as the National Assembly recently passed the Supplementary Appropriations Act, 2024. This situation, Abdullahi argued, undermines the very essence of devolution and attempts to weaken the devolved governments.
Further criticism was directed at the Controller of Budget, who the governors accused of causing delays in approving requisitions for the release of the temporary 50% funds. “It is unacceptable for an institution meant to facilitate the process to instead become a bottleneck,” Abdullahi said, urging the Controller of Budget to expedite the approval process.
Meanwhile, the National Treasury provided an update on the total revenue disbursed to counties since June 2024, revealing that more than Sh158 billion had been allocated in various installments. The Treasury outlined the following disbursements:
| Date | Amount Disbursed | Month Allocated |
|---|---|---|
| July 26, 2024 | Sh30,833,969,281 | June 2024 |
| September 24, 2024 | Sh32,761,092,365 | July 2024 |
| October 17, 2024 | Sh30,833,969,289 | August 2024 |
| November 14, 2024 | Sh32,761,092,366 | September 2024 |
Additionally, the Treasury noted that another installment for October 2024 is in the process of being transmitted to counties.
Despite these disbursements, the governors have expressed dissatisfaction, stating that the delays have created significant financial strain on county operations. Abdullahi highlighted that the national government had already passed its budget with the approval of the Supplementary Appropriations Act, while counties are still waiting for their full allocation. He criticized this imbalance as detrimental to devolution.
Abdullahi also raised concerns about the ongoing debate over the Division of Revenue Bill, which remains unresolved in Parliament. The Senate and the National Assembly have been in a standoff, particularly over a proposed reduction of Sh20 billion from the Sh400.117 billion that the Senate had agreed to allocate to counties. The National Assembly has backed the reduction, which the Senate has rejected, causing further uncertainty for counties.
Governors have strongly warned that any cuts to the county equitable share will have a negative impact on service delivery and could halt operations in the counties. Abdullahi emphasized that the Sh400.117 billion figure was derived based on audited accounts, reflecting the actual needs of counties.
“The Council of Governors has resolved to take immediate action if this deadlock continues,” Abdullahi stated, signaling that further steps could be taken to address the financial crisis facing the counties.