Senate Summons Mbadi, Governor Mutuma Over Meru County Fund Freeze

Senate Summons Mbadi, Governor Mutuma Over Meru County Fund Freeze

The Senate Standing Committee on Finance and Budget has summoned senior government officials to explain the freezing of funds allocated to Meru County, amid growing concerns over potential disruptions to essential services and delays in salary payments.

The move follows a decision by the National Treasury, led by Cabinet Secretary John Mbadi, to halt up to 50 per cent of the county’s equitable share beginning April 10. The directive has raised alarm among lawmakers, who warn it could trigger a financial crisis within the devolved unit.

Members of the committee, chaired by Mandera Senator Ali Roba, said the decision could significantly affect the delivery of critical services such as healthcare, water provision, and public administration.

“We must proceed by first inviting the National Treasury, the County Government of Meru, the Controller of Budget and the Auditor General,” Roba stated.

The committee has also summoned Meru Governor Isaac Mutuma, alongside the Controller of Budget and the Auditor General, as part of a comprehensive inquiry aimed at establishing the circumstances surrounding the fund suspension.

Lawmakers expressed particular concern over the county’s ability to meet its financial obligations, including the payment of salaries to public servants, warning that the freeze could precipitate a liquidity crisis.

According to the Treasury, the decision to withhold funds was made under Article 225 of the Constitution of Kenya 2010, which allows for the suspension of funds in cases of serious financial misconduct or breach of obligations.

In this case, Mbadi cited a persistent material breach by the county government, specifically its failure to settle a court-awarded debt owed to a foreign investor. The debt, initially valued at Ksh339 million, has reportedly ballooned due to an annual interest rate of 14 per cent, placing significant strain on the county’s finances.

While acknowledging the legal requirement to honour court rulings and financial obligations, senators questioned whether the scale of the Treasury’s intervention was proportionate.

“We recognise the need to meet legal obligations, but we must also consider the impact of such drastic measures on service delivery and the welfare of citizens,” one committee member observed during deliberations.

Concerns were also raised about the precedent the decision could set for other counties. Legislators warned that similar actions could expose devolved governments to financial instability, particularly if investors or creditors seek enforcement through mechanisms that disrupt public services.

Mombasa Senator Mohamed Faki highlighted the constitutional safeguards surrounding the decision, noting that the suspension of funds is subject to parliamentary approval.

“If the decision is not approved within 30 days, it will be deemed never to have taken place, and any retained funds must be released immediately,” Faki explained.

The committee is expected to conduct a detailed inquiry, including reviewing legal, financial, and administrative aspects of the dispute before tabling its findings in Parliament.

The unfolding situation has brought renewed attention to the financial management of county governments and the mechanisms available to enforce accountability while safeguarding service delivery.

Analysts note that the outcome of the Senate’s intervention could have far-reaching implications for intergovernmental relations and fiscal discipline within Kenya’s devolved system.

As stakeholders await the committee’s findings, residents of Meru County remain concerned about the potential impact on essential services and livelihoods.

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Senate Summons Mbadi, Governor Mutuma Over Meru County Fund Freeze