County governments are on the brink of collapse as a severe cash crunch threatens to disrupt services and leave employees unpaid during the festive season.

Governors have raised alarm over the Sh63.6 billion owed to counties for October and November, warning that operations could grind to a halt within 30 days unless the national government disburses the funds.

Speaking after an extraordinary Council of Governors (CoG) meeting in Nairobi, CoG Chair Ahmed Abdulahi, also the Wajir Governor, expressed frustration over the disparity between national and county funding.

"It is unfair that business continues for the national government, courtesy of a passed supplementary budget, [while for] counties it has ground to a halt," he said.

For some county staff, the crisis has already hit home, with some going unpaid for more than three months.

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Many counties have been forced to scale back operations to only critical services, with others ceasing non-essential functions entirely.

Governors lamented their reliance on commercial bank loans to pay salaries, a practice that accrues hefty interest rates while awaiting delayed disbursements.

The CoG has demanded the immediate release of all outstanding funds to avert a full-blown crisis that could result in a total shutdown of county operations.

"We cannot continue being at the mercy of commercial banks," the governors stated, emphasising the urgency of the matter.

Health services at risk

The health sector, a key devolved function, is also in peril. Governors highlighted the slow rollout of the new Social Health Insurance Fund, attributing the delays to insufficient resources.

They argued that funds would enable community health promoters to lead registration drives and increase enrolment.

Adding to the woes, counties are grappling with a Sh9 billion debt owed under the now-defunct NHIF, leaving hospitals without critical supplies.

Kenya Medical Supplies Authority (KEMSA) has refused to extend further credit due to an existing Sh3.8 billion debt.

Governors stressed that clearing the NHIF arrears could resolve KEMSA’s credit freeze and restore medicine supplies.

Revenue-sharing standoff

The governors also waded into the ongoing impasse between the Senate and the National Assembly over the Division of Revenue Bill, urging MPs to soften their stance.

They called for adherence to the agreed Sh400 billion allocation, warning that continued disagreements could undermine devolution.

The CoG reiterated its call for the national government to prioritise county funding, warning that any delays would worsen the situation, leaving counties unable to deliver basic services.

As Christmas approaches, county employees and residents face an uncertain future unless immediate action is taken.