The National Treasury announced on Monday that it had disbursed Sh30.8 billion to counties, clearing all arrears to the devolved units, except for November.

The announcement follows a warning from the Council of Governors (CoG) that delay in disbursement of funds to devolved units could disrupt service delivery and cripple operations in counties across the country.

The Ministry of Finance said it had paid Sh158 billion to counties comprising arrears from June 2024, as well as disbursements for July, August, September and October.

“As of October 18, 2024, National Treasury has fully disbursed funds to county governments, current with all payments except for the current month of November,” National Treasury announced.

Transfers to counties should ideally be made by the fifth of each month.

The COG, in a statement following its special meeting, lamented that the delay in the adoption of the County Allocation of Revenue Act (CARA) and continued financial uncertainty are placing immense pressure on county governments, who have not yet received their fair share for the 2024/25 financial year.

Treasury Cabinet Secretary John Mbadi had earlier attributed delays in the disbursement of county funds at the start of the current financial year to legal and administrative difficulties.

There is an impasse between the Senate and the National Assembly in the mediation committee formed to find common ground on the Income Distribution (Amendment) Bill.

In early November, the National Assembly’s Budget and Appropriations Committee failed to reach an agreement, plunging counties into even greater uncertainty.

At the center of the debate is the Sh20 billion cut proposed by the National Treasury, supported by the National Assembly but rejected by the Senate, which says that once resources are allocated to counties, they cannot be recovered.

The Senate has rejected a Treasury offer to give decentralized units Sh380 billion.