The Council of Governors (CoG) has asked the national government to immediately release funds to counties saying that the delay was hindering service delivery in majority of counties.
According to CoG chairperson Peter Munya, the delay was causing anxiety among county staff who feel let down by their respective governments.
"Some counties have not even paid their staff for two months which in return hinders service delivery," he said on Wednesday in a press conference in his home county.
The Meru governor threatened to seek legal action if the National Treasury does not respond by the end of this week, arguing that if the situation persists, services might halt in some counties.
"The situation is worsening day by day because some county governments are waiting for the funds to facilitate their daily activities, if there is a problem, let the concerned parties speak up," he added.
This comes barely a week after Finance Cabinet Secretary Henry Rotich was grilled by the parliamentary budget committee over reports that the government was broke.