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n a statement released on Friday, the council called for the immediate release of Sh78.03 billion in delayed County Equitable Share funds and the restoration of Sh38.4 billion that had been diverted from county allocations. They warned that county services would be halted if the funds were not reinstated within fourteen days.
The council also condemned what it termed as the arbitrary diversion of Development Partners Conditional Grants through the County Governments Additional Allocation Bill, 2025.
“We demand the immediate restoration of all diverted funds to County Governments to ensure uninterrupted service delivery, or County Governments will shut down services within the next 14 days,” said CoG Vice-chairperson Mutahi Kahiga.
The CoG highlighted that the diverted funds include Sh24 billion in donor-supported conditional grants for essential projects in healthcare, agriculture, fisheries, water, roads, slum upgrading, and infrastructure development.
Additionally, Sh13 billion intended for joint projects, such as industrial parks, has also been withheld.
“This blatant act is yet another attempt to systematically cripple service delivery across the 47 County Governments, undermining the Devolution agenda as outlined in the Constitution of Kenya, 2010,” Kahiga emphasized.
The National Treasury has defended the cuts, stating that counties have been unable to absorb the funds this financial year, a claim the CoG has rejected.
“These false claims demonstrate how the National Government treats the Devolution Agenda with indifference,” Kahiga added.
The Council further accused the National Government of deliberately underfunding counties to undermine devolution.
“It is becoming increasingly clear that these ongoing budget cuts are aimed at crippling County Governments, hindering effective service delivery, and ultimately discrediting and dismantling the Devolved system of governance,” the statement read.
The CoG also expressed appreciation for the Senate’s defense of devolution and urged lawmakers to oppose what they deemed unconstitutional budgetary cuts.
The Council is now calling on the National Treasury to release the Sh78.03 billion in County Equitable Share arrears for the months of January, February, and March, in addition to restoring the diverted funds.
“We want to reaffirm that Devolution is here to stay. The people of Kenya can attest to the positive impacts of this system of governance,” Kahiga concluded.
The Council has vowed to pursue legal and constitutional measures to secure the release of the funds, warning that the provision of essential services across the country is at risk.