Urgent Call for Disbursement: CoG Pressures National Treasury for County Funding

By Benard Lusigi | Dec. 19, 2025

Treasury CS John Mbadi. [File, Standard]

The Council of Governors (CoG) has made a fervent appeal to the National Treasury, urging Cabinet Secretary John Mbadi to accelerate the release of KSh 27 billion owed to various counties. This timing is critical, as the financial struggles of many counties intensify due to delays in these essential funds.

Financial Strain on Counties

Kakamega Governor Fernandes Barasa, who chairs the Finance, Planning and Economy Committee, has been vocal about the financial constraints facing county governments. He explained that counties have been unable to satisfy their financial obligations due to the insufficient disbursement of funds. Despite being allocated KSh 50 billion under the County Governments Act of 2025, only KSh 23 billion has been released as of June 30. This has created a significant cash flow gap, stalling essential services across numerous regions.

Governor Barasa emphasized that unless the funds are disbursed swiftly, the operations of county governments will be severely hampered. The current budget allocations have left them in a precarious position, impacting critical public services, including healthcare.

Accusations of Delay Tactics

Barasa did not hold back in his critique of CS Mbadi, accusing him of utilizing delay tactics to withhold the much-needed funds. He said, “As at June 30th, you had only disbursed KSh 23 billion,” underscoring the gap between promised and delivered funding. These accusations are not just political but deeply practical as delays affect the daily operations of county administrations.

The Government’s Position

In response to these accusations, CS Mbadi has argued that fiscal constraints prevent the government from disbursing the remaining KSh 27 billion. He claims that the government lacks the necessary financial space for such disbursements, leading to frustration among county leaders. Barasa responded to this claim, noting that these funds come from development partners, implying that the government should prioritize their release to ensure smooth operations at the county level.

Essential Services at Risk

Barasa’s call for action goes beyond mere financial appeals; he is advocating for the timely disbursement of funds to enable counties to provide essential services. “We need to continue offering critical services to our people, such as healthcare,” he stressed. Without adequate financing, development projects are at risk of being delayed or even cancelled, causing wider societal impacts on communities relying on these critical services.

Supportive Legislation

Alluding to recent legislative changes, Barasa pointed to the County Government Additional Act, signed by President William Ruto earlier this year, as a significant step forward. This law allows counties to receive substantial funding from international development partners for various projects. It reinforces constitutional mandates aimed at ensuring counties have adequate resources for their functions.

Barasa expressed hope that the legislation would translate into more predictable funding mechanisms, addressing historical delays that have plagued development and service delivery.

International Partnerships

Some of the required funds are associated with the Financing Locally-Led Climate Action (FLLoCA) initiative, designed to enhance community-driven climate projects. Support from organizations like the European Union and the Danish Agency for International Development (Danida) underscores the relevance of these partnerships in financing rural projects. Such collaborations aim to bolster the implementation of climate action initiatives that directly benefit local communities.

A Call for Collaboration

In an insightful reminder of the interconnectedness of national and local governance, Barasa called for greater collaboration between county and national governments. “We should collaborate with the national government in serving our people,” he noted, indicating a shared vision between counties and the central government under President Ruto’s leadership.

Barasa’s remarks emphasize that any reluctance to release funds hinders not just county operations but also the broader objectives of national development, calling for urgent attention from decision-makers in the National Treasury.

In summary, the stakes are high for county governments as they strive to meet the needs of their constituents amidst substantial financial constraints. The effective and timely release of funds could be a vital factor in determining the operational success of these local administrations, affecting countless lives across the country.