The Council of Governors (CoG) has issued a 14-day ultimatum to the National Government, demanding the immediate restoration of Ksh. 38.4 billion in diverted county funds.
Should the funds not be reinstated, governors have threatened to shut down county services, a move that could significantly disrupt essential operations across the country.
The standoff follows the passage of the County Governments Additional Allocation Bill, 2025, which saw major budgetary cuts affecting crucial sectors such as health, agriculture, water, fisheries, roads, infrastructure, and trade.
The CoG has strongly condemned what it calls an unconstitutional move, arguing that counties must receive adequate funding to ensure effective service delivery.
Additionally, the governors have called on the National Treasury to release the outstanding county equitable share arrears for January, February, and March, amounting to Ksh. 78.03 billion.
Meanwhile, Treasury CS John Mbadi has proposed a drastic restructuring of the devolved government, suggesting a reduction in the number of counties from 47 to 14 or even the complete abolition of devolution.
Mbadi argues that counties have significantly increased the national wage bill and are a source of financial mismanagement. He proposed reverting to the old provincial system, stating that it would streamline resource allocation and ease the financial strain on the government.
