Nearly half of the equitable revenue share because of county governments remains undelivered by the Treasury, intensifying the financial strain on devolved units as the end of the fiscal year approaches.

According to figures released by the Treasury on Friday, only Sh206.06 billion out of the allocated Sh385.424 billion for the 2023/24 financial year has been disbursed to the 47 counties as of February 29, 2024.

This delay in disbursements exacerbates the cash crunch already faced by county administrations.

The delay in releasing funds directly contravenes Article 202 of the Constitution, which mandates the equitable sharing of revenue between the national and county governments.

Additionally, the County Governments Additional Allocations Act, 2024 provides for further financial support to counties, yet to be fully realized.

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"The government remains committed to ensuring the success of devolution. Delays in disbursing allocations to county governments have had tremendous negative effects over time. This has been due to inadequate revenues flowing to the exchequer," stated the Treasury in the 2024 Budget Policy Statement.

Compounding the issue, the Kenya Revenue Authority (KRA) has only managed to collect 55 per cent of its targeted tax revenue for the fiscal year.

With a shortfall of Sh1.121 trillion remaining to meet the annual target by June, concerns grow over the viability of essential service provision in counties.

Senators have voiced their apprehensions over the situation, warning that the prolonged delay in disbursing funds to counties could lead to the paralysis of vital services within the devolved units.

The adverse effects of this financial strain are already being felt, with county administrations struggling to meet their obligations.

The County Governments Additional Allocations Act, 2024 was designed to supplement county finances, yet its intended impact remains elusive amidst delayed disbursements and a broader fiscal shortfall at the national level.

As the fiscal year-end draws nearer, pressure mounts on the Treasury to expedite revenue disbursements to counties, ensuring the uninterrupted provision of essential services to citizens across the country.

However, with revenue collection targets still far from being met, finding a solution to this financial conundrum remains a pressing challenge for the government.