High Court blocks governors’ bid to force Treasury to release county funds by 15th
High Court blocks governors’ bid to force Treasury to release county funds by 15th
County workers could face fresh uncertainty over the timely payment of their salaries after the High Court struck out a case by the Council of Governors (CoG) seeking to compel the National Treasury to release funds to counties on time.
CoG had gone to court seeking orders requiring the Treasury and the Controller of Budget to release the equitable share allocated to county governments by the 15th of every month.
The governors argued that delays in releasing the funds were disrupting county operations and leaving devolved units without adequate resources to deliver essential services.
The Council further wanted the court to order the immediate release of any outstanding equitable share owed to counties, arguing that Treasury had no legal basis to delay the funds or make their release conditional on the settlement of pending county bills.
The case, filed in December 2019, arose after the Council accused the Treasury of repeatedly delaying disbursements despite constitutional provisions requiring the equitable share to be transferred to counties without undue delay.
However, the Attorney General challenged the petition, arguing that the CoG had not exhausted the alternative dispute-resolution mechanisms provided under the Intergovernmental Relations Act before approaching the High Court.
The High Court rejected the argument that the Council lacked the legal capacity to sue, finding that it qualifies as a ‘person’ under Article 260 of the Constitution and has the mandate to institute proceedings concerning the collective interests of the 47 county governments.
Justice Roselyne Aburili, however, found that the Council had failed to demonstrate that it had exhausted the statutory mechanisms for resolving disputes between the national and county governments before filing the case.
“Sifuna will not be a Presidential candidate in 2027” – MP Silvanus Osoro
Moses Kuria dares Gachagua to oath taking over alleged pre-election deal with Ruto
Man dies in police cell in Makueni hours after arrest, officers claim suicide
Family of American killed in Kenya sues Iran
The judge also noted that the Supreme Court had previously held that courts could not prescribe a specific operational deadline for the National Treasury to transfer equitable share funds to counties.
The Supreme Court had previously held that delays in releasing funds to counties must be justified and explained, with the High Court citing its 2020 advisory opinion in the case.
“Any delay in releasing funds to Counties has to be justifiable and must be explained in good time at a forum convened for that purpose by the National Government.”
Justice Aburili consequently found that the High Court lacked jurisdiction to grant the main orders sought by the governors, particularly the demand that Treasury be compelled to release county funds by a specific date every month.
The judge upheld the Attorney General’s objection and struck out the CoG petition, together with the applications filed alongside it, bringing the seven-year-old case to an end.
The decision could leave county governments relying on existing intergovernmental and statutory mechanisms to challenge delays in the release of equitable share funds, with the timely availability of funds remaining critical to the financing of county operations, including payment of workers and delivery of services.
Charlene Ruto weds Tanzanian Businessman Isaya Yunge (DETAILS)
Ruto appoints new chairpersons of state parastatals
