{
  "id": 3771161,
  "title": "Kalonzo warns against Treasury plan to centralise county funds",
  "url": "https://urgent.news/2026/08/27/kalonzo-warns-against-treasury-plan-to-centralise-county-funds",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-27T15:53:59.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/inside-politics/kalonzo-warns-against-treasury-plan-to-centralise-county-funds"
  },
  "original_language": "en",
  "account": "Former Vice President Kalonzo Musyoka has cautioned against a proposed National Treasury initiative that seeks to centralise county revenues under Nairobi's control, warning that this move could undermine the principles of devolution enshrined in the 2010 Constitution. Musyoka, speaking on Thursday, August 27, 2026, on the 16th anniversary of the Constitution's promulgation, urged for a stronger adherence to the document and greater financial independence for Kenya's 47 counties.\n\nMusyoka highlighted that the country's primary challenge lies not with the Constitution itself, but with its inadequate implementation. He pointed out that counties often face delays of four to five months in receiving their equitable share of funds, despite constitutional mandates for timely transfers. These delays have forced counties to resort to borrowing from commercial banks to cover operational costs while waiting for funds they are already entitled to.\n\nAccording to data from the Controller of Budget, counties accumulated Ksh163.74 billion in pending bills by December 2025, a significant increase from Ksh128.94 billion four years prior. Nairobi County alone accounted for Ksh81.79 billion of the outstanding bills, while public hospitals in various counties were awaiting Ksh26.87 billion in claims from the Social Health Authority. Musyoka questioned the Treasury's reliability in managing county finances given its failure to consistently release the 15 per cent equitable share on schedule.\n\nHe emphasized that the Constitution already provides mechanisms for addressing counties that breach financial laws, such as Article 225 which allows for the withholding of funds in serious breaches, subject to parliamentary approval and public disclosure. Musyoka reiterated his party's call to increase counties' equitable share from the minimum of 15 per cent to 35 per cent of nationally collected revenue. He also pledged to publish and gazette a monthly county disbursement schedule, ensuring interest accrues against the national government for late transfers.\n\nMoreover, Musyoka challenged governors to improve financial management, stressing that counties must maintain clean audit trails and account for all public resources. He acknowledged Nairobi's challenges but urged governors to treat accountability as a fundamental responsibility. Musyoka drew a parallel between the 2010 Constitution and the 2007 electoral crisis, which resulted in over 1,100 deaths and the displacement of more than 600,000 people, linking it to security concerns rather than purely electoral issues.\n\nHe expressed concerns over the IEBC's transparency in voter registration, election technology procurement, and the timely review of electoral boundaries. Musyoka affirmed that his party would not support constitutional amendments that weaken devolution, undermine independent commissions, limit the Judiciary, or alter presidential term limits. He urged Kenyans to reflect on the 16th anniversary of the Constitution not just as a celebration of its ideals, but as a call to ensure its full implementation.",
  "summary": "Former Vice President Kalonzo Musyoka has warned against a proposed National Treasury plan that would place county revenues under a centralised system controlled from Nairobi, saying the move could undermine devolution. Musyoka spoke on Thursday, August 27, 2026, as Kenya marked 16 years since the promulgation of the Constitution of Kenya 2010, calling for stronger […]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}