Governors threaten shutdown over Sh38 billion budget cut

By Wanderi Kamau

The Council of Governors (CoG) has strongly condemned the National Government for diverting Kshs 38.4 billion meant for county governments, warning of a possible shutdown of county services if the funds are not restored within 14 days.

In a press statement issued on March 21, 2025, CoG Vice-Chairperson Mutahi Kahiga decried the move, calling it an attempt to systematically cripple service delivery across all 47 counties.

The funds in question were part of the County Governments Additional Allocation Bill, 2025, and included conditional grants from development partners for critical projects in healthcare, agriculture, water, roads, and infrastructure development.

Counties deprived of critical development funds

Of the diverted funds, Kshs. 24 billion were conditional grants from donors intended to support ongoing county projects, while Kshs. 13 billion were additional allocations from the National Government for jointly funded initiatives such as industrial parks.

Kahiga criticized the justification given by the National Treasury, which argued that counties were unable to absorb the additional funds within the current financial year. He dismissed these claims as baseless, stating that counties had already committed the funds to various projects.

“The National Government is casually handling the Devolution agenda by claiming counties cannot absorb funds, yet these allocations had already been planned for,” he said.

He further accused the National Government of deliberately underfunding counties while increasing its own expenditure by Kshs. 114 billion in the recently enacted Supplementary Appropriation Act, 2025.

Deliberate attempts to frustrate devolution

The Council of Governors argued that the latest budget cuts were part of a broader scheme to frustrate devolution and undermine county governments.

“These systematic budgetary cuts are designed to cripple counties, hinder effective service delivery, and ultimately discredit and kill the devolved system of governance,” Kahiga asserted.

He accused the National Government of creating a crisis by withholding funds and later blaming counties for failing to deliver essential services.

The CoG reiterated that counties have a constitutional right to adequate resources, and that devolution is not a privilege granted by the National Government, but a constitutional guarantee that must be upheld

Senate urged to defend devolution

The governors commended the Senate for its continued efforts in defending devolution and called on senators to resist unconstitutional budget cuts.

“We implore the Senate to stand firm with the people of Kenya and the Council of Governors in resisting these unconstitutional reductions and safeguarding the gains of devolution,” the statement read.

The CoG emphasized that counties rely on these funds to run essential services, and any further budgetary reductions would significantly disrupt service delivery.

Governors issue 14-day ultimatum

The Council of Governors issued a firm demand for the immediate restoration of all diverted funds and the release of Kshs. 78.03 billion in equitable share arrears, which has not been disbursed for the months of January, February, and March.

Failure to meet these demands, the governors warned, would result in a complete shutdown of county operations within two weeks.

“If these funds are not released within 14 days, counties will have no choice but to shut down services,” Kahiga declared.

Devolution must be protected

The governors reaffirmed their commitment to protecting devolution and ensuring that county governments receive their rightful allocations.

“Devolution is here to stay, and the people of Kenya can attest to its benefits. It is our patriotic duty to protect the Constitution and its supremacy,” the statement concluded.

As tensions escalate between the county and national governments, all eyes are on the Treasury to see whether it will heed the governors’ demands or risk a potential disruption of services across the country.