The Council of Governors (CoG) has given the national government a 24-hour ultimatum to release Sh94.35 billion owed to counties as agreed on May 2.
The county bosses lamented that the failure by the National Treasury to release the delayed funds has left them in a debt crisis.
"The CoG has engaged the Office of The Controller of Budget on the delayed approval of county requisitions to this effect and has agreed that the Office of the Controller of Budget fast-rack the approval processes within 24 hours," said CoG Chairperson Anne Waiguru.
"We urge the treasury to expedite the release of the pending equitable share to Counties to facilitate the implementation of county budgets."
On the controversial health functions, Waiguru said there is a crisis in the implementation of devolved services, derailing the gains made since devolution was introduced in 2013.
She noted that county governments have recorded commendable trends in the last 10 years, according to the Kenya Demographic and Health Survey.
At the same time, the Kirinyaga governor regretted that the ministry of Health has been shunning their agreements.
"We note with concern that all engagements and agreements made between the Ministry of Health and the Council of Governors have been blankly disregarded," she stated.
She, at the same time, urged development partners not to favour the national government.