Financial Meltdown Looms as 26 County Budgets Rejected in Dramatic Move by Controller of Budget.

A financial emergency is unfolding across Kenya’s counties. In a shocking, high-stakes move, the Controller of Budget, Dr Margaret Nyakang’o, has rejected the 2025/26 budgets of 26 county governments, triggering an imminent cash blockade that could cripple operations across devolved units.

Eighteen of those counties submitted budgets riddled with glaring flaws—allocations failed to align with specific projects, recurrent expenses masqueraded as development investments, and essential planning reports were conspicuously missing.

A further six counties simply missed the submission deadline, locking themselves out of critical funding. The ripple effect: funds now lie dormant, and only compliant counties can requisition their allocations through IFMIS.

Major counties such as Nakuru, Kisumu, Uasin Gishu, Bungoma, Narok, Bomet, Busia, Kajiado, Kericho, and Garissa are caught in the eye of the storm. Kericho remains under scrutiny, while Isiolo’s case heads to the legal department. Wajir, Mandera, Meru, Nyandarua, Trans-Nzoia, and Siaya await formal submissions.

The fallout is fast and fierce: salary delays loom large, contractors await payments, and hospitals brace for shortages of drugs and medical kits. Essential services hang in the balance.Citing legal authority, Nyakang’o invoked Section 104(1) of the County Government Act (2012), stressing that no public funds may be deployed outside an approved planning framework.

Counties must first present a County Integrated Development Plan (CIDP), an Annual Development Plan (ADP), and a County Fiscal Strategy Paper (CFSP)—yet most flagged counties forwarded these documents only this month, well past the mandated deadlines.

National Treasury insiders confirm July’s disbursements were sent to counties’ revenue funds as planned—but access is restricted until lingering budget issues are resolved. August’s allocation also hangs in limbo.

This move by the Controller of Budget positions oversight as a non-negotiable pillar of public finance management. The abrupt halt to disbursements may well force county leaders to choose between political expediency and legal compliance—while ordinary citizens bear the brunt of delayed services and halted development.

Wamuzi News Ke

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