Governors have not received Sh51.76 billion in arrears, being the equitable share of the revenue for the last two months.
The county chiefs have said the situation is dire and the Treasury had deliberately continued to withhold the funds making employees go without salaries and affecting the purchase of medical supplies.
Council of Governors chairperson Anne Waiguru said out of the funds, Sh20.31 billion was owed to 27 counties as allocation for August.
The remaining Sh31.45 billion, she says was the September allocation for the 47 counties.
“It is unfortunate that the third generation of counties has started on a bleak note due to lack of resources. We wish to inform the Kenyans that the Constitution and PFM Act requires the Treasury to disburse the funds on the 15th day of every month without delay,” she said.
“While we are cognizant that we are in a new political dispensation, as counties we are duty bound to ensure smooth and interrupted service delivery.”
The Kirinyaga governor said they are concerned that, despite being in the transition period, the current financial situation was devastating.
Waiguru said the outstanding disbursement for October was Sh29.6 billion.
“The delays and unpredictable disbursements are a recipe for the accruing pending bills and negatively impacts service delivery,” she said.
Waiguru spoke Thursday during a CoG meeting at their offices.
The governors warned that several casuals at the counties risk not earning their pending salaries for subsequent months as they are not on the payrolls as required.
The directive by the Controller of Budget that all employees be paid through the Unified Human Resource Information System, they said, will see many locked out.
To resolve the issue, the council vowed to furnish the office of the CoB with the required information to facilitate payment.
The county chiefs also criticised the government's failure to finalise the unbundling, costing and transfer of some functions to the counties.
Through the Intergovernmental Budget and Economic Council, the council and the intergovernmental relations committee will lobby to facilitate the process.
They also called for the anchoring of the CoG secretariat into law, to support intergovernmental relations and ensure counties are fully supported to undertake their mandates.
“We note that in the new government structure, devolution is not part of the ministries as such modalities for funding the CoG is affected. We, therefore, ask the President to direct the Treasury to grant the council a vote for direct funding,” Waiguru said.
Edited by Kiilu Damaris