Treasury Under Fire as Counties Demand Sh68.5 Billion Before Deadline

County governments are pushing the National Treasury to urgently release Sh68.5 billion in outstanding allocations before the close of the current financial year, warning that prolonged delays could cripple essential services and stall development projects across the country.

Governors have raised concerns over the slow disbursement of funds, saying counties are struggling to meet their financial obligations, including paying workers, maintaining healthcare services and settling debts owed to suppliers and contractors.

The unpaid amount is expected to be released before June 30, the deadline marking the end of the government’s financial year. However, counties fear that failure to receive the money on time will create significant budgetary gaps and disrupt service delivery to millions of Kenyans.

The delayed transfers have placed additional pressure on county administrations, many of which rely heavily on monthly allocations from the national government to sustain day-to-day operations. Several counties have already reported difficulties in implementing development projects due to cash shortages.

County leaders argue that unpredictable funding undermines devolution by limiting their ability to plan effectively and execute projects approved in their budgets. They have called on the Treasury to prioritize county allocations and honor its constitutional responsibility.

At the same time, the National Treasury continues to grapple with competing financial demands, including debt repayments, recurrent expenditure and funding national government programmes, a situation that has tightened the country’s fiscal space.

Economic analysts warn that further delays could have far-reaching consequences, particularly in critical sectors such as healthcare, agriculture, water and infrastructure, which depend heavily on consistent funding.

The issue of delayed county disbursements has persisted for several years, with county governments repeatedly urging reforms that would ensure timely and predictable release of funds.

With only a short period remaining before the financial year concludes, attention now turns to whether the Treasury can mobilize enough resources to clear the outstanding balance and prevent disruptions to county operations nationwide.