The standoff between county governments and the National Treasury has escalated, with governors threatening to halt county operations unless Sh116.4 billion in withheld funds is released within 14 days.

The Council of Governors (CoG) has accused the Treasury of crippling devolution through financial strangulation, warning that essential services could grind to a halt if the impasse persists.

In a statement issued on Friday, CoG Vice-chairperson Mutahi Kahiga decried what he termed the arbitrary diversion of county funds, particularly Development Partners Conditional Grants.

“We demand the immediate restoration of all the diverted funds to County Governments to ensure uninterrupted service delivery, failure to which County Governments will shut down its services in the next 14 days,” Kahiga stated.

At the heart of the dispute is Sh38.4 billion which governors claim was redirected without consultation.

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Of this, Sh24 billion had been earmarked for donor-funded projects in healthcare, agriculture, fisheries, water, roads, slum upgrading, and infrastructure.

Another Sh13 billion meant for joint county initiatives, including industrial parks, has also been withheld.

Governors argue that the continued delay in releasing Sh78.03 billion in County Equitable Share for January, February, and March is a calculated attempt to paralyse operations.

Kahiga called the move “an affront to the Devolution agenda as enshrined in the Constitution of Kenya, 2010.”

The National Treasury has justified the financial hold-up, citing counties’ alleged inability to absorb funds efficiently within the financial year.

However, the CoG has dismissed this explanation as misleading, with Kahiga stating, “These fallacious assertions depict how the National Government casually handles the Devolution Agenda.”

The governors believe the withholding of funds is a deliberate strategy to undermine county governments and render devolution ineffective.

“It is becoming increasingly apparent that these systematic budgetary cuts are designed to cripple County Governments, hinder effective service delivery, and ultimately discredit and kill the Devolved system of Governance,” the CoG stated.

As the funding row deepens, the CoG has praised the Senate for defending devolution and urged legislators to oppose what it described as unconstitutional financial cuts.

While governors remain adamant that counties cannot function under such fiscal pressure, they have vowed to pursue all available legal and constitutional avenues to unlock the funds.

Reiterating their position, Kahiga declared, “We wish to reiterate that Devolution is here to stay. The People of Kenya can attest to the benefits of this system of governance.”

With the countdown now underway, the fate of crucial county services, from healthcare to infrastructure projects, hangs in the balance.