Counties to finally receive funds after three-month revenue deadlock

Counties
Counties to finally receive funds after three-month revenue deadlock

After enduring three months of severe financial strain, county governments are finally set to receive crucial funds following a key meeting between the Council of Governors (CoG) and Treasury officials.

Treasury Cabinet Secretary (CS) John Mbadi, alongside CoG Vice Chair Governor Ahmed Abdullahi Jiir and Nairobi Governor Johnson Sakaja, convened to address the prolonged impasse that had frozen county disbursements. Counties, which have been desperately pushing for the release of these funds, are now optimistic that the cash flow from the national exchequer will resume soon.

“This has been a difficult period for us, but we are hopeful following the discussions that counties will soon see funds flowing again,” Vice Chair Governor Jiir said after the meeting.

Nairobi Governor Johnson Sakaja also echoed the sentiment, stating, “We had a fruitful meeting and are happy that counties will be receiving funds soon. It has been a tough three months, but now the matter is resolved.”

The revenue deadlock had left the 47 counties without critical disbursements from the national government, severely impacting essential services and development projects. In response, many counties were forced to rely on creative solutions, with some governors borrowing or slashing non-essential services to stay afloat.

Health services were among the hardest hit, with public hospitals facing supply shortages and staff payment delays. In some counties, school feeding programs, essential for keeping children in school in marginalized areas, also faced disruptions.

The Treasury CS confirmed that the meeting had indeed borne results, and counties should anticipate the release of funds soon.

“The meeting was fruitful, and counties should expect the resumption of exchequer release,” Mbadi said.

During the Council of Governors (COG) meeting with President William Ruto at State House on Universal Health Coverage (UHC), the governors expressed concerns. In response, President Ruto requested that a small team work with the Treasury to explore possible solutions. The governors nominated Nairobi Governor Johnson Sakaja, Vice Chair Abdullahi, and Finance Chair Jiir to meet with Treasury Cabinet Secretary Mbadi to discuss options.

For many counties on the brink of financial collapse, this news brings much-needed relief as they look to stabilize and restart essential operations.

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