County governments are facing a looming financial crisis as the National Treasury has yet to release over Sh60 billion in funds, Controller of Budget Margaret Nyakang’o has revealed.
Nyakang’o disclosed that counties last received disbursements in November, leaving most with less than Sh100 million in their accounts. “They are using the little they have to pay December salaries, but no funds have been received since November,” she stated.
Nyakang’o warned that counties heavily reliant on Treasury funding could soon run out of cash, potentially crippling essential services and development programmes. The Treasury has attributed delays to dwindling revenues and mounting debt obligations.
Despite a history of late disbursements, Section 17 of the Public Finance Management Act requires the Treasury to release equitable revenue shares to counties by the 15th of each month—a deadline often missed.
