The Council of Governors (CoG) in Kenya has issued a stern 14-day ultimatum to the National Treasury, demanding the immediate disbursement of Sh78.03 billion in delayed County Equitable Share funds and the reinstatement of Sh38.4 billion allegedly diverted from county allocations. The governors have warned that failure to address these issues will result in a shutdown of county services.
In a statement released on Friday, CoG Vice-chairperson Mutahi Kahiga condemned the purported arbitrary diversion of Development Partners Conditional Grants through the County Governments Additional Allocation Bill, 2025. The diverted funds reportedly include Sh24 billion earmarked for critical projects in sectors such as healthcare, agriculture, fisheries, water, roads, slum upgrading, and infrastructure development. An additional Sh13 billion intended for joint projects, including industrial parks, has also been withheld.
The National Treasury has justified the budgetary cuts by asserting that counties have struggled to absorb the allocated funds within the current financial year—a claim the CoG vehemently disputes. The governors perceive these actions as deliberate attempts to undermine devolution and cripple service delivery across the 47 county governments.
The CoG has lauded the Senate for its efforts in defending devolution and has called upon lawmakers to oppose what it describes as unconstitutional budgetary reductions. The governors are resolute in their demand for the National Treasury to release the withheld funds promptly to ensure the continuity of essential services at the county level.
