Controller of Budget Margaret Nyakang'o /HANDOUTGovernors and MCAs are locked in a silent battle over the financial independence of county assemblies.
This comes amid a report revealing that only two counties have operationalised funds meant to free the devolved legislatures from dependence on county executives.
The revelation comes more than a year after President William Ruto signed the law requiring the establishment of a County Assembly Fund in each of the 47 counties.
The latest Budget Implementation Review Report by Controller of Budget Margaret Nyakang’o shows that only Trans Nzoia and Marsabit had operationalised their County Assembly Funds by June 30, 2026.
Trans Nzoia had approved transfers of Sh509.17 million into its fund, while Marsabit transferred Sh890.46 million.
“Clerks of county assemblies should work with county executive committee members responsible for finance to fully operationalise County Assembly Funds by June 30, 2026,” Nyakang’o said in the report.
The remaining counties were at different stages of establishing the funds, raising questions over the pace of implementation of a reform designed to give county assemblies greater control over their finances.
The County Public Finance Laws (Amendment) Act, 2025, amended the Public Finance Management Act to establish a County Assembly Fund for every county.
The law provides that the fund is administered by the clerk of the county assembly.
The delay has reignited long-running battles between governors and MCAs over the influence of the county executive on county assemblies.
The Public Finance Management Act mandates county finance executives to establish funds in the county governments.
Given that the finance executives are appointees of the governors, it follows that they could be benefiting from their bosses' influence in delaying the establishment of the funds.
Nyakang’o said the slow operationalisation of the funds must be addressed to ensure county assemblies achieve the financial independence envisaged under the law.
“County governments should develop clear disbursement schedules for transfers from the County Revenue Fund to the County Assembly Fund in their FY 2026-27 budget submissions,” Nyakang’o said.
For years, MCAs have complained that their ability to perform their constitutional oversight role is weakened when they have to depend on the same county executives they are required to scrutinise for the release of funds.
The new law was therefore seen as a major step towards strengthening the independence of county legislatures by ensuring that money allocated to assemblies could be managed through a dedicated fund administered by the assembly clerk.
President William Ruto, while signing the legislation at State Lodge in Homa Bay, said the law was intended to address the financial vulnerability of county assemblies.
“The County Public Finance Laws (Amendment) Bill amends the Public Finance Management Act to provide for the establishment of a County Assembly Fund in each county,” the President said.
Under the law, the clerk of the county assembly is responsible for administering the fund and ensuring that monies allocated to the assembly are used exclusively for assembly functions.
Meru Senator and Senate Deputy Speaker Kathuri Murungi, who sponsored the Bill, argued that lack of financial resources had weakened county assemblies and undermined their oversight work.
“Most of the time, there is no money in the county assemblies. When they requisition, they are not able to get the funds to carry out their work,” Murungi said during debate on the legislation.
He said county assemblies could not effectively hold governors to account while relying on them for operational funding.
“We want to treat the 47 county assemblies the way the national government treats both Houses of Parliament. Money allocated to Parliament is shared between the National Assembly and the Senate through the Parliamentary Service Commission. We decide what to do and when—the same should apply to county assemblies,” he said.
Murungi further argued that financial dependence had exposed MCAs and assembly staff to pressure from county executives.
The law seeks to change that arrangement by creating a separate financial framework for county assemblies, with predictable transfers from county revenue.
