The Council of Governors has warned the National Treasury against diverting funds meant for counties even as reports of a cash crunch are making the rounds.
Chairman Peter Munya noted counties are currently experiencing financial difficulties due to failure by the Treasury to disburse funds.
He said the last time most counties received money was in July and this has stalled their programmes.
“The problems we have been experiencing with disbursement of funds to counties either indicate there is a problem with revenue collection or the money has been diverted. There will be serious consequences if the money has been diverted. The law is clear that national and county funds should be separated,” Mr Munya said.
Close to two thirds of the public servants are county workers hence the delay in releasing the funds is a threat to service delivery, added Mr Munya, the Meru governor.
“I hope that is not the case. It is illegal to divert money meant for counties to other projects. That would lead to a constitutional crisis. In Meru, we got money in July. Few counties have received money in August and September,” he said.