President William Ruto has insisted that he will not borrow money to appease governors by disbursing funds timely.
The Head of State, instead, challenged governors to be understanding of the government's balance sheet and live within their means.
Ruto said he had held a discussion with governors in the past and told them clearly that they should not expect him to borrow to pay county dues.
The President said he is happy that governors have come to agree with him that it will not be sustainable to borrow at high interest rates so as to meet disbursement obligations.
''Initially they were making a lot of noise on the delays, however, with time they are now understanding,'' Ruto said during a church service in Kakamega on Sunday.
''What I have said is that I will not borrow money to pay counties, let us live within our means.''
Ruto promised that by the end of June, the National Government would have cleared all the arrears owed to the devolved units.
''We had paid previously Sh28 billion, last week we paid Sh33 billion and in this coming week, God willing, we shall pay another Sh31 billion so that by end of June we should be done with counties,'' the President said.
The President said he is committed to ensure that devolution succeeds, contrary to claims by his critics in the Azimio coalition.
''I want counties to succeed, but I cant't allow counties to succeed on borrowed money which has brought us trouble in the past,'' he said.
The President said the have agreed with county governments to work together as obligated by the Constitution and the law.
He said that recent meetings between governors and national government ministries have given hope in forging a good collaboration on healthcare.
''I am happy with the outcome of the meetings,'' he said.