A major financial crisis is unfolding in Kenya after 26 county governments had their budgets rejected, raising fears of stalled services and worsening cash shortages across devolved units.
The decision has triggered uncertainty as counties brace for delays in accessing funds, threatening to paralyze essential operations including health, education support, and infrastructure development.
The rejection stems from disputes over compliance with fiscal laws and adherence to expenditure ceilings. Treasury officials and oversight bodies have flagged irregular allocations and questioned the sustainability of spending plans submitted by the affected counties. As a result, these counties are now barred from accessing crucial funds until they align their budgets with the required guidelines, leaving them exposed to a crippling financial standstill.
Governors have expressed concern over the situation, warning that public servants may go without salaries and key projects could grind to a halt. Health facilities, which rely heavily on county funding, are particularly at risk of disruption, with potential shortages of medical supplies and delayed staff payments.
Development initiatives such as road maintenance, water supply projects, and agricultural programs could also stall, undermining service delivery at the grassroots level.
The standoff has reignited tensions between county administrations and the national government over resource allocation and financial autonomy.
County leaders argue that the strict conditions imposed on their budgets fail to account for unique local priorities, while Treasury officials insist that compliance with fiscal discipline is necessary to safeguard public finances and prevent misuse of resources.
Analysts warn that the prolonged budget impasse could erode public confidence in devolution and disrupt economic activity in affected regions. With more than half of the country’s counties caught in the crisis, the pressure is mounting on both the Treasury and county assemblies to resolve the stalemate swiftly.
Unless an agreement is reached soon, the cash crunch threatens to deepen, leaving millions of Kenyans without critical services.
Written By Ian Maleve
