Counties get Sh15.1bn relief from Treasury amid mounting arrears, service disruptions

It is a relief for counties as the National Treasury disbursed Sh15.1 billion on Tuesday, easing a cash crunch that had stalled operations and delayed salaries in several devolved units.

The funds, which were released to 22 counties, mark the second and final tranche for February, following a previous disbursement of Sh17.82 billion to 25 counties on April 14, 2025.

Despite the recent release, a backlog of Sh65.84 billion owed for March and April is still pending, casting uncertainty over county operations that continue to struggle with delayed funding.

Counties have repeatedly decried the Treasury's inconsistency in releasing funds, saying the irregular flow of money hampers service delivery and affects the livelihoods of workers and suppliers.

In November last year, governors warned of an impending shutdown of county services if the disbursement delays persisted.

Council of Governors Chairperson Ahmed Abdullahi voiced concern over the delayed funding.

“We demand that the National Treasury immediately release the funds owed to counties; failure to which, county governments will have no choice but to shut down operations completely,” he said.

Although Section 17 of the Public Finance Management Act, 2012 requires the Treasury to release county funds by the 15th of every month, this timeline is often missed.

The Treasury has attributed the delays to challenges such as low revenue collection by the Kenya Revenue Authority, competing demands for national funds, and a growing public debt burden.

The Sh15.1 billion released on Tuesday went to 22 counties where Nakuru received the highest share at Sh1.61 billion, followed by Turkana with Sh1.12 billion and Kilifi with Sh1.03 billion.

Other counties and their allocations include Kisii (Sh790.99 million), Kwale (Sh733.15 million), Laikipia (Sh457.89 million), Lamu (Sh276.62 million), Machakos (Sh815.76 million), Meru (Sh845.26 million), and Murang’a (Sh638.50 million).

Narok received Sh785.55 million, Nyamira (Sh455.59 million), Nyandarua (Sh504.60 million), Nyeri (Sh554.08 million), Tana River (Sh580.10 million), and Trans Nzoia (Sh640.94 million).

Other allocations went to Wajir (Sh841.73 million), Uasin Gishu (Sh720.15 million), Embu (Sh456.44 million), Garissa (Sh704.68 million), Isiolo (Sh418.49 million), and West Pokot (Sh15.10 million).

The earlier release on April 14 of Sh17.82 billion covered part of the February allocation for 25 counties. Nairobi received the largest amount at Sh1.71 billion, followed by Kakamega (Sh1.10 billion), Mandera (Sh993.70 million), and Bungoma (Sh949.50 million).

Kitui was allocated Sh925.30 million, Makueni (Sh722.27 million), Marsabit (Sh645.75 million), Kajiado (Sh709.32 million), Kisumu (Sh714.45 million), and Migori (Sh712.73 million).

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Other counties included Busia (Sh638.76 million), Nandi (Sh624.41 million), Siaya (Sh620.62 million), Bomet (Sh596.28 million), and Elgeyo Marakwet (Sh410.27 million).

Kirinyaga received Sh463.18 million, Samburu (Sh477.97 million), Taita Taveta (Sh430.62 million), Tharaka Nithi (Sh373.95 million), and Vihiga (Sh449.89 million).

Disbursements also reached Kericho (Sh572.76 million), Kiambu (Sh1.04 billion), Homa Bay (Sh694.47 million), and Baringo (Sh568.12 million).

Even as the February allocations are now fully disbursed, governors remain worried about the delays in March and April funds. These delays have disrupted county planning and limited their ability to run essential programs.

County governments have repeatedly urged the Treasury to adhere to the law and release funds in time to avoid interruptions.

While the current disbursement provides a temporary break from financial strain, uncertainty over the remaining funds continues to cloud the stability of devolved functions.