County governments across Kenya face imminent shutdown as governors clash with the National Treasury over delayed disbursement of Ksh 63.6 billion. The funds represent allocations for October and November 2024.
The Council of Governors (COG) has warned sternly about the looming crisis. They claim the delay severely impacts essential county services.
Wajir Governor and CoG chairperson Ahmed Abdullahi. Photo credit: Dennis Onsongo | Nation
“Our counties cannot function without proper funding,” says the COG leadership. The situation has created uncertainty in local government operations.
The financial deadlock stems from the delayed implementation of the County Allocation of Revenue Act. This act governs how national resources are shared among Counties.
However, the National Treasury maintains a different position on the matter. Treasury officials assert they have fulfilled their obligations to the Counties.
Treasury representatives state, “We do not owe counties any funds beyond November. ” They express concern about low fund absorption rates in some counties.
The standoff has created tension between the two levels of government, and county operations are in the balance as the dispute continues.
Healthcare services in counties face particular risk from the funding delay. Many county hospitals struggle to maintain essential services.
Staff salaries in county governments might also face delays. This could lead to industrial action by county workers.
Due to the financial uncertainty, development projects in various counties have stalled. Infrastructure improvements and social programs have suffered most.
The governors warn of dire consequences if the situation persists. They predict a complete breakdown of county services by January 2025.
“We cannot guarantee service delivery without timely disbursement,” one governor explains. The warning highlights the severity of the situation.
County assemblies have joined the governors in demanding immediate action. They emphasize the constitutional requirement for timely fund disbursement.
The delay affects all 47 counties across Kenya. Each county faces unique challenges in managing the financial shortfall.
Some counties have already reported difficulties in basic operations. These include waste management and water supply services.
Emergency services in several counties operate at minimal capacity. This puts residents at risk during critical situations.
Parliamentary intervention might become necessary to resolve the crisis. Both houses of Parliament could mediate between the parties.
The Commission on Revenue Allocation has expressed concern about the situation. They emphasize the need for a swift resolution.
Economic experts warn of ripple effects throughout the country. Local businesses that depend on county government contracts suffer most.
The public has started feeling the impact of the standoff. Citizens worry about access to essential services in coming weeks.
Efforts to negotiate a solution continue behind the scenes. Both sides express willingness to discuss compromise options.
The crisis highlights broader issues in Kenya’s devolved system. Questions arise about the effectiveness of current revenue-sharing mechanisms.
Civil society organizations call for structural reforms. They suggest changes to prevent similar crises in future.
The situation requires immediate attention to prevent service disruption. Stakeholders agree that quick resolution serves everyone’s interests.
As January 2025 approaches, pressure mounts for a solution. The next few weeks prove crucial for Kenya’s devolved government system.
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