Controller of Budget warns of funding delays as counties miss budget deadlines

A cloud of uncertainty has descended on county operations as the Controller of Budget raised alarm over widespread delays in the submission and approval of 2025–26 budgets, leaving most counties locked out of funding access from the National Treasury.

Two months into the new financial year, only 15 county governments have submitted their budgets, and of these, only Nairobi and Kisii have received full clearance.

The other 13 are still undergoing review, including Kitui, Makueni, Machakos, Kakamega, Kirinyaga, Nyeri, West Pokot, Vihiga, Samburu, Kajiado, Laikipia, Lamu and a duplicate entry of Kirinyaga.

Counties that have not yet submitted, or are pending approval, cannot receive funds until their budgets are cleared by the Controller of Budget.

This comes at a time when county leaders have been quick to blame the National Treasury for delayed disbursements, yet now the cause appears to lie within the counties themselves. Controller of Budget Margaret Nyakang’o expressed concern over the non-compliance, terming it a violation of the law.

“They should submit immediately after June 30. They are already breaking the law if the assembly does not pass the budget by that date,” Nyakang’o said.

The Public Finance Management Act requires counties to submit their approved budgets by the end of June to enable requisitions and funding from the Treasury.

Unlike the national government, which Nyakang’o said submitted its signed budget on time, many county executives and assemblies are lagging.

Her office, guided by Article 228 of the Constitution, oversees budget implementation by authorising withdrawals from public funds.

Without budget approval, counties cannot access any money to implement planned programmes or pay for services.

The delay is being attributed to multiple internal factors. Sources have pointed to poor coordination, ongoing wrangles between governors and assemblies, and in some counties, deliberate sabotage.

Nyakang’o cited instances where assemblies have hijacked the budgeting process for political gain.

“In some cases, assemblies engage in what can only be described as political blackmail—deliberately delaying, rewriting, or rejecting proposals to extract concessions from governors, assert power, or settle scores,” she said.

Bungoma is one such example. A clash between Governor Kenneth Lusaka’s administration and the county assembly has ended up in court after the assembly disbanded the legitimate budget committee and formed an ad hoc one that altered the budget significantly.

“There is a serious case in Bungoma. The assembly disbanded the budget committee and formed an ad hoc one, which then mutilated the proposed budget. They passed their own version using coercive tactics,” Nyakang’o said.

The judiciary has since stopped the release of funds to Bungoma, effectively freezing all county operations and halting Lusaka’s development plans.

Nyamira County is also facing budget paralysis. An attempted impeachment of Governor Amos Nyaribo triggered a wave of political tension that led to the impeachment of Speaker Enoch Okero.

He was accused of betraying pro-impeachment MCAs.

The result was a bitter split. Two separate factions emerged, with one calling itself Bunge Mashinani and holding unofficial sittings outside the assembly chambers, while the other carried on as the main assembly.

With infighting and confusion continuing in many counties, critical services and development projects now hang in the balance. The Controller of Budget has warned that unless counties act quickly, the situation could escalate into a full-blown service crisis across the country.