Governors have issued a 14-day ultimatum to the national government, demanding the immediate release of budgeted funds or risk a nationwide county shutdown.
Council of Governors Vice-Chairperson Mutahi Kahiga on Friday condemned what he described as the arbitrary diversion of Development Partners’ Conditional Grants meant for county governments under the County Government Additional Allocation Bill, 2025.
He termed the move a direct attack on devolution and an attempt to cripple service delivery in all 47 counties.
“This blatant act is yet another attempt to systematically undermine devolution, which is enshrined in the Constitution of Kenya, 2010,” said Kahiga.
As a result of the deductions, counties stand to lose Sh38 billion in additional allocations, including Sh24 billion in donor-funded conditional grants for critical sectors such as healthcare, agriculture, fisheries, water, and slum upgrading. Another Sh13 billion, meant for jointly agreed projects like industrial parks, has also been affected.
Kahiga further accused the national government of unjustifiably reducing counties’ equitable share of revenue under the pretext of a revenue shortfall. He pointed out that, contrary to claims of financial constraints, the national government had increased its own expenditure by at least Sh114 billion in the recently enacted Supplementary Appropriation Bill, 2025.
The National Treasury has defended the cuts, arguing that the funds cannot be absorbed within the current financial year. However, Kahiga dismissed this explanation, noting that counties had already committed the funds to ongoing projects.
“The Council of Governors demands the immediate restoration of all diverted funds to ensure uninterrupted service delivery. Failure to comply within 14 days will leave us with no choice but to shut down county services,” he warned.
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