CS Mbadi summoned by Senate Committee over delays in county funding
By Cynthia Lodite, May 7, 2026The Senate Standing Committee on Finance and Budget convened on Thursday, May 7, 2026, to address critical delays in county funding and the controversial proposal to suspend fund transfers to Meru County.
The session featured a confrontation between lawmakers and the Cabinet Secretary for National Treasury and Economic Planning, John Mbadi, regarding the national government’s commitment to devolved units and the legal threshold for invoking fund stoppages.
The proceedings commenced with a status update on the long-stalled construction of headquarters for Isiolo, Lamu, Tana River, Tharaka Nithi, and Nyandarua counties.
Cabinet Secretary Mbadi confirmed that Kshs440.9 million has been allocated for the current financial year to address these projects.
“I commit that we will pay it before the end of June. I’ll actually try to disburse it before the end of this month, so that the money is absorbed in time,” the Cabinet Secretary assured the committee.
County pleas
Despite this commitment, Lamu Governor, Hon. Issa Timamy, voiced the deep frustration of the affected regions, noting that he had served as governor, gone on sabbatical, and returned to find the structures still incomplete, characterizing the delay as an embarrassment.
The focus subsequently shifted to the National Treasury’s request to halt funds to Meru County under Article 225 of the Constitution, triggered by an unpaid arbitral award to a French investor, Rico Rock Limited.
Senators questioned the Treasury’s decision to pursue the extreme measure of stopping all transfers rather than exploring intergovernmental intervention under Article 190.
Migori Senator Eddy Oketch scrutinized the rationale behind the move, asking, “What was the decision point from the Ministry to go to the extreme end of picking Article 225 of the Constitution instead of Article 190 when that was your intention?”
In response, CS Mbadi revealed that prior intervention by the President had fundamentally altered the case’s trajectory, explaining that the President, as Chairman of the Summit, had committed to the national government settling the remaining Kshs130.9 million principal of the debt.
Mbadi’s response
“Had it been communicated to me formally, I would probably not have taken the step that I took,” Mbadi admitted, explaining that the unpaid debt had escalated into a diplomatic issue threatening Kenya’s bilateral relations with France.
He confirmed that he is now awaiting formal communication from the Head of Public Service to inform the Controller of Budget and officially withdraw the stoppage request.
Kakamega Senator Boni Khalwale called for a moment of introspection within the Treasury, criticizing the decision to stop funding, given that Meru County had already paid Kshs200 million toward the award.
The committee concluded by demanding comprehensive written documentation of these commitments to ensure the national government remains legally bound to resolve the debt.
“Prepare and submit to the Finance Committee a written, detailed account of the Meru advance debt intervention. Include the rationale for invoking Article 225 instead of Article 190, the treatment of principal versus interest, and the engagement with the French government. In addition, ensure this written record is also sent to the Senator for Meru County,” Vice Chairperson Senator Tabitha Mutinda, the sessional Chairperson, directed.
As the Senate holds the final authority to enforce or decline fund stoppages, the Committee expects a formal resolution and communication to the Controller of Budget by next week.