Governors from the Lake Region Economic Bloc (LREB) have taken issue with the prolonged delays in the disbursement of funds to counties.
Led by Kisumu Governor Prof Anyang’ Nyong’o, the county bosses warned that the delays could affect the provision of essential services and urged the National Treasury to adhere to constitutional obligations and ensure timely disbursements to avert a crisis.
“The National government is acting against the Constitution, which mandates respect and enforcement of the Division of Revenue Act (Dora)," the LREB Chairperson, Prof Nyong'o said.
He was accompanied by governors James Orengo (Siaya), George Natembeya (Trans Nzoia), Dr Ochilo Ayacko (Migori), Kenneth Lusaka (Bungoma), Paul Otuoma (Busia), Hillary Barchok (Bomet) and Amos Nyaribo of Nyamira.
The county chiefs warned that critical services in the counties will soon grind to a halt with a number of county employees having salary arrears.
According to the Kisumu Governor, the delays hamper counties’ ability to operate effectively and meet budgetary commitments.
He said that counties, unlike the national government, rely solely on the allocated revenue stipulated in the Dora.
“Local revenue sources are insufficient to meet counties’ budgetary demands or sustain essential services, including payment to civil servants,” he said.
He termed the delays “unconstitutional”, stressing that it is unjust for county employees to be deprived of their dues.
Busia Governor Paul Otuoma also highlighted the adverse effects on frontier counties, explaining that without funds, Busia struggles to sustain blue economy projects, job creation, and tourism initiatives critical for local growth.
The LREB governors collectively called on the National, Treasury to release the funds immediately.
“Stop playing games with us and disburse funds to counties,” Prof Nyong’o demanded, urging swift action to restore financial stability for counties.
At an earlier event, Mombasa Governor Abdulswamad Nassir also expressed such concerns, describing a three-month delay in disbursements as severely disruptive to county operations.
Speaking at an event in Nyali last week, Mr Nassir detailed the negative impact, citing cash flow constraints that hamper service delivery and project implementation.
Governor Nassir clarified that counties are not deliberately returning unutilised funds to the national government but are unable to use them due to delayed allocations from the national government.
“The funds are not reaching us on time, causing backlogs in supplier payments and delaying critical projects,” he explained, underscoring the delays’ detrimental effects on the devolved government system.
Governor Nassir further noted that the delays contravene the principles of devolution, which are intended to empower counties to address local needs independently.
He urged the National Treasury to expedite fund releases to enable counties to meet their obligations and execute development initiatives essential for local communities.
The calls come at a time there is a deadlock in mediating the Division of Revenue (Amendment) Bill, 2024 among members of the National Assembly and the Senate.
Senate has rejected National Assembly’s push to slash counties' shareable revenue following the collapse of the Finance Bill, 2024 resulting from Gen Z protests in June.
The hardline stand by both parties is not only delaying the passage of the Division of Revenue (Amendment) Bill, 2024 but also the County Allocation of Revenue Bill that shares the allocation among the 47 counties.
