The cash crisis is deepening across the 47 counties and the Council of Governors says operations may grind to a halt.
Some counties have not paid their employees for months, others have been forced to take loans to meet their expenses.
Some have stopped development projects so they can pay salaries and wages.
“The delay in disbursement of funds has negatively affected the lives of county government civil servants and service delivery,” Council of Governors chairman Wycliffe Oparanya said in a statement.
The Kakamega governor disclosed that development has stalled as the counties cannot pay contractors due to lack of funds.
Covid-19 intervention measures have been hampered, health facilities have run out of essential supplies even as health workers' strikes continue to take a heavy toll on patients.
The council has already threatened to shut down counties and take legal action to push the Treasury to disburse the cash.
Kenya County Government Workers Union secretary-general Roba Duba said some counties have not paid their workers for months.
“We are experiencing a problem. Our members have not been paid,” Duba told the Star.
Duba said payment of salaries has been a problem long before the Covid-19 pandemic. The virus 'only aggravated' workers' woes, he said.
The county governments have not received their Exchequer releases for at least three months, owing to the delays by the National Treasury.
Oparanya places the total outstanding figure at Sh89.6 billion – meant for November, December and January.
“We urge the National Treasury to expedite the release of the equitable share to county government by the 15th of every month as the law clearly stipulates. The counties need to pay salaries to the county civil servants and to provide services to wananchi,” Oparanya said.
Last week, Treasury CS Ukur Yatani admitted delays in disbursement of the cash to the devolved units, saying the Covid-19 pandemic has taken a heavy toll on revenue collection.
"Due to the adverse effects of Covid-19 and the subsequent containment measures that have slowed down economic activities, the disbursements to county governments are falling behind by two months,” he said.
Yatani expressed optimism that the balance will be disbursed 'in due course' with the opening up of the economy and the reversal of the tax relief measures.
“The Treasury expects revenue collection to improve from the current quarter and will prioritise disbursements to county governments with a view to clearing the arrears,” he said.
(Edited by V. Graham)
