The Council of Governors (CoG) led by Kakamega's Wycliffe Oparanya, on Tuesday, October 13, sued National Treasury headed by CS Ukur Yattani.
In a statement, the council was seeking to compel National Treasury to release 50% of the equitable allocation.
Speaking to Kenyans.co.ke, a communications representative confirmed that counties were yet to received the funding days after President Uhuru Kenyatta approved Ksh369 billion.
The Ministry of Treasury, however, on the same day, announced that it had released Ksh52.2 Billion to the County Governments, being their equitable share for the months of July and August 2020.
In a statement, Yattani urged the County Governments to give priority to settlement of pending bills.
The 47 counties were scheduled to receive the money in equitable share and conditional grants for the financial year 2020/21 on Tuesday, October 13.
In the new budget, the devolved governments were set to receive Ksh79.126 billion that was due to them in the first three months while Ksh25.32 billion was to cover October.
Uhuru signed the budget into law on Thursday, October 8, and they were set to receive the money in a lumpsum.
Also included in the budget is Ksh9.43 billion from the road maintenance/fuel levy as well as Ksh30.2 billion in loans and grants.
In September 2020, senators unanimously voted to approve the third basis for sharing revenue among counties.
All the 41 senators present in the House voted to approve the formula after months of a standoff.
The Third revenue sharing formula has been at the heart of all Senate debates since July 2020, leaving the 47 counties crippled due to lack of funding.
The Council of Governors (CoG) was forced to announce a partial shutdown of the counties, stating that they were no longer capable of running the counties, and blamed their colleagues at the Senate for the delays.
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