Key government ministries and county governments are facing a deepening financial squeeze after the National Treasury failed to release adequate funds to cover their obligations. The delay in disbursements has sparked growing concerns over stalled projects, unpaid salaries, and the disruption of crucial public services across the country.
The Treasury, grappling with severe cash flow constraints, has been prioritizing debt repayment and essential national functions, leaving many ministries and devolved units with limited resources.
County administrations in particular have decried the funding snubs, noting that staff salaries and development programs are now months behind schedule. Governors have warned that the situation risks crippling healthcare delivery, education support services, and other grassroots operations that directly affect citizens.
Ministries have not been spared either. Several key state departments have confirmed that their budgets remain underfunded, stalling procurement plans and delaying the implementation of flagship projects.
Sources within government indicate that the Treasury has been rationing funds, releasing small amounts that only cater for partial expenditures, while recurrent bills continue to accumulate.
The financial crisis has also strained relations between the national and county governments. Governors have accused the Treasury of undermining devolution by failing to meet constitutional obligations of timely disbursement of funds.
They argue that counties, unlike ministries, rely almost entirely on allocations from the national government, and prolonged delays leave them exposed to public backlash over services they cannot deliver.
Economic analysts warn that the trend could worsen if the Treasury does not increase revenue collection or restructure expenditure priorities. Rising debt obligations and reduced fiscal space have left the government with limited room to maneuver, forcing a delicate balance between debt servicing and public sector financing.
The funding shortfall has already drawn the attention of oversight institutions, with Parliament expected to question the Treasury on the delays. Meanwhile, both ministries and counties continue to operate under uncertainty, bracing for more disruptions if the situation persists.
Written By Ian Maleve
