The Council of Governors (CoG) has issued a 14-day ultimatum to Treasury Cabinet Secretary John Mbadi, warning of a total shutdown of county operations if funds are not released.

Addressing the media on Friday, former CoG Chair and Kirinyaga Governor Anne Waiguru accused the Treasury of delaying crucial county funds, bringing development projects to a standstill.

“We, as governors, issue a 14-day ultimatum to the government, failure to which county governments will shut down,” Waiguru declared.

The standoff stems from the Treasury’s delay in disbursing county allocations, which governors say has crippled essential services, including water, road construction, and healthcare. They are also protesting budget cuts totaling Ksh25 billion, arguing that the reductions threaten donor-funded projects.

Governors have called on the Senate to reject the proposed budget cuts and push for revisions before the final budget is approved. Among the affected grants are:

• Financing Locally-Led Climate Action (FLLoCA)
• Food Systems Resilience Program (FSRP)
• National Agricultural Value Chain Development Project (NAVCDP)
• Water and Sanitation Development Project (WSDP)

CoG Chair and Wajir Governor Ahmed Abdullahi also highlighted the controversy surrounding the Roads Maintenance Levy Fund (RMLF), a longstanding dispute between counties and Members of Parliament (MPs). Governors insist that since road construction is a devolved function, counties should receive their share of the fuel levy, which funds road maintenance.

The only agreement reached so far is to exclude the RMLF from the budget cuts due to an ongoing court case.

Governors are now urging the Treasury to act swiftly to prevent a crisis in county service delivery, warning that failure to do so will force them to suspend operations across all 47 counties.