Governors have issued a two weeks notice to close down all county services unless the Senate agrees on the Revenue Formula stalemate.
In a statement on Thursday, the Council of Governors said "if the prevailing situation persists, effective Thursday September 17, Counties will have no choice but to shut down".
Governors said County Governments are unable to pay salaries and allowances of health workers and other county staff due to lack of funds.
"Consequently, we shall release all county employees to proceed on leave until an amicable solution on the issue is reached," they said.
The county bosses threatened to sponsor motion to dissolve Senate for failing to safeguard the interests of County Governments by stalling on the 3rd generation formula debate.
"To this end, we hereby forewarn the Senate that a Petition for its dissolution can be initiated by any member of the public through the High Court as provided for under Article 258 of the Constitution," the statement said.
The CoG had earlier on urged the National treasury to urgently release half of the County equitable share of revenue to ensure resumption of operations.
The 12 member Senate committee formed to determine how counties share the Sh316.5 billion allocated to them in the 2020-21 budget is yet to agree on the way forward.
The team was formed two weeks ago after a protracted standoff in the House on the formula.
The Senate has failed in nine sittings to approve the formula after lawmakers whose counties will lose money in the proposal rejected it.
Senate Majority Whip Irungu Kangata defended the senate saying,"A meeting was held between the Senate Treasury and other stakeholders and it was agreed that the funds be released. So, any reports that the failure to pass County Revenue Allocation formula in the Senate is the problem is not true.
