The Bill allocates Sh3.2 billion to community health promoters, Sh2 billion to County Aggregation and Industrial Parks (CAIPs), and Sh1.7 billion to settle salary arrears for county health workers.

Additionally, Sh532 million has been set aside for the construction of county headquarters in Nyandarua, Tana River, Tharaka Nithi, Isiolo, and Lamu counties.

Senators overwhelmingly supported the Bill but urged county governments to ensure accountability and proper use of funds.

Senate Majority Leader Aaron Cheruiyot criticized delays in disbursing the funds, warning that the prolonged stalemate between the Senate and the National Assembly had stalled county development.

“It is embarrassing that the push and pull between the Senate and the National Assembly has stalled the implementation of the Bill, with the Sh10 billion Roads Maintenance Levy Fund at the center of contention,” said Cheruiyot on Friday.

He emphasized that funds for critical projects—such as county headquarters construction and industrial parks—must be closely monitored to prevent the rise of white elephant projects.

He also urged counties to prioritize producing raw materials for industrial parks rather than constructing buildings with no practical use.

Senate Chief Whip Boni Khalwale also condemned the delay in releasing funds, stating that donors were puzzled by the situation.

He noted that while funds meant for county development remain idle in bank accounts, interest continues to accrue on unused money.

“Governors, Senators, and Members of the National Assembly have become the enemies of the people. This Bill is meant to ensure counties function effectively. The success or failure of this country depends on how leaders act,” said Khalwale.

This comes as the Council of Governors (CoG) has threatened to shut down county operations in 14 days if the National Treasury does not restore Sh38.4 billion in diverted funds and release Sh78.03 billion in delayed county allocations.

Led by Vice Chairperson Mutahi Kahiga, the CoG condemned what it described as a deliberate attempt to cripple county governments and weaken devolution.

“The Council of Governors expresses its deep concern and unequivocal condemnation of the arbitrary diversion of Development Partners’ Conditional Grants due to county governments in the consideration and passage of the County Governments Additional Allocations Bill, 2025,” Kahiga said in a statement.

Governors noted that the Sh38.4 billion diverted from additional allocations includes Sh24 billion earmarked for key county projects in healthcare, agriculture, fisheries, water, roads, slum upgrading, and infrastructure development.

Another Sh13 billion was meant to fund ongoing projects such as industrial parks, jointly agreed upon with the National Government.

According to the CoG, the National Treasury has defended the budget cuts, arguing that counties are unable to absorb the additional funds within the financial year.

With counties facing mounting financial challenges, all eyes are now on the Treasury to resolve the impasse and prevent a potential shutdown of county operations.