The Council of Governors (CoG) is intensifying its demands on the National Treasury and Cabinet Secretary John Mbadi to expedite the release of Sh27 billion owed to counties. This funding is crucial for enabling county governments to meet their financial obligations effectively.
Fernandes Barasa, the Chairperson of the Finance, Planning and Economy Committee and Kakamega Governor, voiced concerns about the financial strain currently facing counties. He pointed out that only Sh23 billion of the Sh50 billion supplementary allocation, as dictated by the County Governments Act of 2025, has been disbursed. This shortfall is severely impacting county operations.
Barasa emphasized, “I want to tell our CS National Treasury Mbadi that we have the County Government Additional Act, which allocated Sh50 billion to counties in May 2025.” He stressed the urgency of this matter, underscoring that delays exacerbate the already critical situation.
In a direct appeal, Barasa accused Mbadi of employing delay tactics that hinder timely resource allocation. He stated, “As of June 30th, you had only disbursed Sh23 billion,” which further complicates the fiscal environment for local governments.
Furthermore, Barasa highlighted that the ongoing delays disrupt the workflows of county governments, creating a backlog of unmet financial obligations. “The CS maintained that the government has no fiscal space to disburse Sh27 billion, yet these are funds coming from our development partners,” he noted.
He reiterated the necessity for immediate action: “I want to request our CS Treasury to expedite the supplementary budget 2025/2026 disbursement of Sh27 billion related to our conditional grants coming from development partners.” This funding is essential for stabilizing county operations and providing uninterrupted essential services to the people.
Barasa articulated the need for counties to deliver critical services, notably in healthcare, while also meeting other pressing financial obligations. He underscored the shared responsibility between governors and the national government to serve the population effectively, reaffirming, “we should collaborate with the national government in serving our people because they are the same people,” an arrangement that aligns with discussions held with President William Ruto.
Earlier this year, President Ruto assented to legislation enabling counties to receive substantial funds from development partners for various projects. This law not only complements existing constitutional mandates but also aims to ensure that counties are financially equipped to fulfill their responsibilities proficiently.
Addressing previous challenges, the new act seeks to introduce a more predictable funding mechanism to avert disruptions in both development and service delivery caused by delays in the disbursement of additional allocations.
Significantly, some of the forthcoming funds are designated for the Financing Locally-Led Climate Action initiative (FLLoCA), underlining the government’s continued commitment to community-driven climate action.
Additionally, the European Union and the Danish Agency for International Development (Danida) are involved in funding projects targeted at enhancing rural areas, marking a collaborative effort towards sustainable development.