Counties in Crisis: Governors demand immediate restoration of all diverted funds

When Nyeri Governor Kahiga Mutahi and his Kirinyaga counterpart Anne Waiguru appeared alongside other county leaders on Friday to address the press at the Council of Governors' offices in Nairobi, they visibly looked upset.

Their protest against what they termed as President William Ruto’s stranglehold on devolved governance echoed bitter frustrations, with anger and disappointment clearly etched on their faces.

“We demand the immediate restoration of all diverted funds to county governments to ensure uninterrupted service delivery. Failure to comply will result in county governments shutting down their services within the next 14 days,” Kahiga warned.

It was yet another instance of county leaders voicing their frustration, accusing President Ruto of disbursing funds to devolved units at his discretion, as though they were his personal assets.

Refusing to take questions from the Eastleigh Voice and instead opting to march to the National Treasury, the county chiefs ignited debate on the government’s commitment to devolution.

During the heated press briefing, they threatened to suspend county operations in 14 days if the National Treasury did not restore Sh38.4 billion in diverted funds and release Sh78.03 billion in delayed county allocations.

Constitutional and administrative law expert Evans Ogada notes that devolution in Kenya, introduced under the 2010 Constitution, was envisioned as a transformative system to decentralise power, promote equitable resource distribution, and enhance local governance. However, its implementation has faced significant challenges.

“One major issue is the varying capacity among county governments, with some lacking the technical expertise and infrastructure to deliver services effectively. Corruption and mismanagement of funds have also plagued several counties, eroding public trust and stalling development projects,” Ogada observes.

He further states that public participation, a cornerstone of devolution, remains weak in many areas due to limited awareness and engagement mechanisms. If these challenges are not addressed, they risk undermining the promise of devolution, leaving many Kenyans disillusioned with its potential to drive inclusive development.

The county chiefs have condemned what they describe as a deliberate attempt to cripple county governments and weaken devolution.

“The Council of Governors expresses its deep concern and unequivocal condemnation of the arbitrary diversion of Development Partners’ Conditional Grants meant for county governments in the consideration and passage of the County Governments Additional Allocation Bill, 2025,” said Kahiga.

The governors highlighted that the Sh38.4 billion lost from additional allocations included Sh24 billion earmarked for critical county projects in healthcare, agriculture, fisheries, water, roads, slum upgrading, and infrastructure development.

Another Sh13 billion was meant to fund ongoing projects, such as industrial parks, which had been jointly agreed upon with the national government.

According to the Council, the National Treasury has justified these budget cuts by claiming that counties are unable to absorb the additional funds within the financial year.

The Council also pointed out that while county budgets are being slashed, the national government has increased its own expenditure by Sh114 billion in the recently enacted Supplementary Appropriation Act, 2025.

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The challenges facing devolution have been the subject of numerous academic studies. A research paper published in 2019 by scholars Samuel Ngigi of the University of Nairobi and Doreen Nekesa Busolo of the Centre for Development Research and Strategy, titled Devolution in Kenya: The Good, The Bad and The Ugly, sheds light on these issues. The study highlights the duplication of roles as a significant problem.

“Currently, more people are doing the same job, increasing the likelihood of misuse of power and wastage of resources. Between 2014 and 2016, Kenya witnessed a great deal of back-and-forth between the National Assembly and the Senate. For some, it remains difficult to distinguish between the roles of senators and MPs,” the paper notes.

Recent remarks by National Treasury Cabinet Secretary John Mbadi have further complicated matters regarding the government’s stance on devolution.

Mbadi criticised the devolved system, suggesting that Kenya should revert to the eight provinces under the previous Constitution or, at most, 14 administrative units. He argued that the 47 counties had become unsustainable due to the ballooning wage bill.

“Each of the 47 counties has a fully-fledged government, a governor who acts as a mini president with a deputy, who is essentially a running mate. Then there are county ministers—most went for the maximum of ten—chief officers, more than ten, and county assemblies…” Mbadi stated.

In December last year, President Ruto issued a directive that was expected to resolve conflicts between the national government and devolved units.

However, a 2023 report by the Intergovernmental Relations Technical Committee (IGRTC), which seeks to resolve disputes between central and county governments, revealed that at least ten county functions worth Sh272.2 billion ($2.1 billion) had yet to be devolved and remained under national government control.

According to Wajir County Governor and Council of Governors Chairperson Ahmed Abdullahi, devolution is under immense threat, with county governments being starved of resources, thereby crippling their ability to provide essential services to Kenyans.