The Council of Governors (CoG) has expressed grave concerns over delays in the disbursement of county funds and the ongoing stalemate surrounding the Division of Revenue (Amendment) Bill 2024 and the County Allocation of Revenue Bill.
During an extraordinary meeting, the CoG commended the Senate for maintaining the County Allocation at Kshs. 400.117 billion, a crucial step toward supporting devolved functions.
However, the Council criticized the National Assembly for slashing this allocation by Kshs. 20 billion, warning that such actions threaten service delivery and the survival of devolved governance.
Delays in Funding
County governments remain in limbo, with the County Allocation of Revenue Act yet to be signed into law, more than five months into the 2024/25 financial year.
This delay has left counties unable to access their equitable share, despite the National Government continuing to receive its revenue allocation under the Supplementary Appropriations Act 2024.
The CoG labeled the passage of this act “unprocedural and unconstitutional,” citing a Supreme Court advisory that prohibits the approval of appropriation bills before the finalization of the Division of Revenue Bill.
“This is an overt attempt to weaken devolution and undermine the governance structure enshrined in the Constitution,” stated CoG Chairperson Ahmed Abdullahi.The National Treasury’s failure to disburse Sh63.6 billion for October and November allocations has further compounded the crisis.
Counties are currently operating on 50% of last year’s allocations, but this stopgap measure will run out by December, potentially halting county operations from January 2025.
Health Sector Struggles
The CoG highlighted the issue of unpaid claims totaling Kshs. 9.1 billion owed to counties by the defunct National Hospital Insurance Fund (NHIF). These debts, coupled with delays by the Social Health Authority (SHA), are crippling service delivery and the payment of suppliers.
The Council urged the SHA to expedite payments and encouraged citizens to register for SHA to support universal healthcare implementation.
Call to Action
The CoG demanded immediate intervention from the Senate to pass the County Allocation of Revenue Act and called on the National Treasury to release pending funds. Additionally, the Council warned that if the impasse continues, counties may have to shut down operations entirely.
“Devolution is under immense threat. It is being starved of resources, crippling counties’ ability to offer essential services and drive economic growth,” warned Abdullahi.The CoG appealed to stakeholders and citizens to safeguard devolution, emphasizing its role as a cornerstone of Kenya’s governance and development.
