Why delayed county funding threatens devolution: CoG raises alarm over National Treasury failures
Mwiti criticised the National Treasury for consistently failing to meet its constitutional obligation to release funds on time, noting that the delays have placed counties under severe financial pressure.
Council of Governors (CoG) CEO Mary Mwiti has voiced renewed concerns over ongoing delays in the disbursement of funds to counties, warning that the situation continues to cripple service delivery, stall development projects, and disrupt operations across devolved units.
Speaking on Spice FM, Mwiti stressed that the delay in funding poses the greatest threat to devolution in Kenya, with some counties forced to suspend essential services for months due to a lack of resources.
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“The biggest challenge in devolution is delayed disbursements of funds, which in some instances has almost driven counties to a halt,” she said.
Mwiti criticised the National Treasury for consistently failing to meet its constitutional obligation to release funds on time, noting that the delays have placed counties under severe financial pressure.
She highlighted the growing disparity between national and county government employees, where national staff continue to receive salaries on schedule while county workers often go unpaid for extended periods, straining families where both spouses serve at different government levels.
“You cannot commit what you don’t have,” Mwiti explained. “If the disbursement is delayed for four months, then counties have nothing to absorb or account for.”
The CoG has repeatedly called on the National Treasury to fulfil its constitutional mandate by releasing funds promptly and has proposed reforms to strengthen the Treasury’s capacity to serve both levels of government effectively.
Important constitutional gain
Mwiti underscored that devolution remains one of Kenya’s most important constitutional gains, having brought power, resources, and accountability closer to the people. However, she cautioned that these gains are now at risk.
“The best thing the Constitution gave Kenyans is devolution. It devolved power, resources, and accountability to the people,” she said.
Meanwhile, county governments are under increasing scrutiny following the rollout of the Treasury Single Account (TSA) system—a major reform intended to tighten financial controls and improve transparency in public resource management.
Appearing before the Senate Standing Committee on Devolution and Intergovernmental Relations in July, Treasury Cabinet Secretary John Mbadi said counties must align with the TSA framework, which aims to streamline public finance operations and curb misuse of funds.
"The implementation of this policy is part of the broader Treasury Single Account action plan that is expected to improve financial governance and control over public funds. The primary goal of the policy is to ensure accountability and transparency in the use of public resources,” Mbadi told senators.
His comments followed a report from the Controller of Budget (CoB), which revealed that counties are currently operating 1,854 commercial bank accounts—contrary to the Public Finance Management Regulations, 2015. The CoB warned that such practices erode transparency and complicate effective budget monitoring.
In response, senators urged the Treasury to consult with the Council of Governors and Senate committees to develop a TSA framework tailored specifically for counties.
Committee Chair Mohamed Abbas stressed the need to balance fiscal discipline with county-level autonomy.
“Hon. Mbadi, your Ministry needs to review the existing regulations to provide clarity on the requirements for county governments to open commercial bank accounts, and explore options to compel full disclosure of all accounts,” Mohamed said.
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