Deputy President Rigathi Gachagua will on Monday chair an Intergovernmental Budget Economic Council (IBEC) summit.
Gachagua has convened the meeting at a time counties are facing a cash crisis over delayed disbursement of funds.
According to the governors, Treasury is yet to release funds amounting to Sh66 billion being the arrears of April and May.
Speaking on Sunday, Kakamega Governor Fernandes Barasa expressed concerns noting this has resulted in significant challenges for the counties.
He said it had made it difficult for them to carry out their daily operations and implement crucial programs effectively.
"Before the end of this month, the Integrated Financial Management Information System (IFMIS) will be closed, making it more difficult for governors to work. We appeal to Treasury to release money owed to counties,” Barasa said.
The Council of Governors, Ministry of Devolution, and other State agencies will attend the meeting.
The county bosses had on April 24 issued a 14-day ultimatum to shut down counties to protest.
Treasury, however, averted this by releasing Sh31.4 billion for the month of February.
"Since the Council's notice on this matter, issued on April 24, 2023, the National Treasury has disbursed February 2023 allocations amounting to Sh31.45 billion to the 47 Counties. Currently, the outstanding monies owed are Sh29.6 billion for March 2023 allocation," said CoG Chairperson Anne Waiguru on May 2.
In a statement, the Kirinyaga governor said that the council and Treasury agreed that the latter would be prompt in making disbursements to counties moving forward.
"Additionally, it has been resolved that the March allocations be disbursed by May 15, 2023, and April allocations by the end of May.
The disbursements for May and June are to be issued by the first two weeks of June to allow counties to absorb these resources within the financial year," she said.
Among the issues to be discussed in IBEC include agreement on the schedule for the disbursement of available cash and proposed legislation or policy with financial implications for the counties, or for any specific county or counties.
Members will also discuss proposed regulations to the Public Finance Management (PFM) Act and recommendations on the equitable distribution of revenue between the national and counties.
