National Treasury Cabinet Secretary John Mbadi (pictured) has refuted claims by the Council of Governors (CoG) that his ministry is frustrating devolution by delaying the disbursement of funds to counties.

Speaking at the 41st Annual Seminar of the Institute of Certified Public Accountants of Kenya (ICPAK) in Mombasa, Mbadi clarified that all pending allocations to counties up to October had been cleared.

“I know counties face challenges because the funds we allocate are insufficient. However, let us be honest with ourselves and not misrepresent the facts. The dispute over the Sh420 billion allocations must be resolved by December, as beyond that, there will be no legal framework to release funds to counties,” he said.

He dismissed accusations from CoG, describing them as baseless and unfair. “It hurts to see reports claiming I am frustrating devolution when, in fact, I have worked tirelessly to support it, as I promised during my vetting,” he said.

The CS provided a detailed account of county fund disbursements, dating back to before his tenure, to counter the allegations. Mbadi explained that as of July, the counties had a balance of Sh30 billion carried over from the previous financial year.

He said three key budget lines were re-budgeted in the 2024/25 financial year, including Sh13 billion for the CDF and Sh26 billion for pension arrears. This left an unbudgeted balance of Sh151 billion out of the Sh218 billion in pending bills as of June 30, 2024.