Commercial banks and landlords have been warned that county government employees will default on their obligations due to protracted debates on revenue allocation.
The Council of Governors in a statement said they will be unable to pay salaries and service providers in time.
In the letter, the COGs office begged banks and landlords to understand the situation until the standoff is resolved.
“Landlords should try and extend time for payment of rent. Banks should also not penalize county government’s employees for lateness or failure to service their standing orders,” said the COGs office.
According to the Council of Governors (COG) office, this crisis has been caused by collapse of the mediation of the Division of Revenue Bill between the National Assembly and the Senate.
“Following this standoff, the National Treasury will not be able to disburse Monies,” said the COG in a letter to governors.
The COGs office also warned the citizens and employees of county governments of tough times ahead.
“Services rendered to the citizens will be delayed and employees of the county governments will not receive statutory payments,” noted the COGs office.