The Interior ministry has postponed the transfer of ownership of Siaya ATC from the national government to the county, throwing into disarray plans for the establishment of Barack Obama university.
The ATC was to be transferred to the Siaya county government on Friday to pave way for construction of the university.
The Memorandum of Understanding on the terms relating to the transfer was ready for signing before a mail from PS Karanja Kibicho directed that the process be postponed until further notice.
Kibicho directed Prof Karega Mutahi - the chairman of the Intergovernmental Relations Technical Committee (IGRTC), and the county government to halt the handing over process.
He sent an email when Mutahi and Siaya deputy governor James Okumbe were already at the site for the signing ceremony. The same was cancelled indefinitely.
Mutahi said the ministry suspended the handover for further consultations between the two levels of government.
He told county officials to wait for further direction in a week's time.
The county government officials led by deputy governor protested the directive saying the said mail was not copied to them as protocol dictates.
"I am going back to Nairobi to consult expansively on the stalemate and in a week's time, I will communicate to you on the way forward," Mutahi said.
Okumbe said they suspect the stalemate emanates from the 13 houses that were occupied by Siaya police bosses in January last year.
He said the county government of Siaya has already set aside Sh100 million for the college's renovation.
"Failing to handover the facility will halt the ongoing renovation hence breach the contract. It is the national government that will foot any additional cost imposed by the contractors," the deputy governor said.
Okumbe, who was accompanied by county secretary Dave Anyona, warned the national government against interference with the devolved
functions.
He regretted that such impromptu directives from the national government are bound to jeopardise service delivery and development at the county level.
"Why is the postponement coming even after the process to transfer the institution to the county government under the mediation of The Intergovernmental Relations Technical Committee is complete?"
Barack Obama University, if formed, will be the first university in Alego Usonga constituency since independence.
Former US President Barack Obama, who the university is named after, is expected to preside over the opening of the institution.