The stalemate between Senators and Members of Parliament (MPs) on the Division of Revenue bill 2019 has escalated.
The Council of Governors has now announced the shutdown of county governments if the issue is not resolved.
While making the announcement, Kakamega Governor Wycliffe Oparanya on Thursday said that the counties are not able to operate.
Oparanya said that county governments have been struggling to pays salaries due to the delay in the allocation of funds.
He said that the operations in different sectors of the economy have been paralyzed. Oparanya said that the operations in the counties will not continue beginning September 16, 2019.
"Beyond this date, if the matter is not resolved the county governments will have no option but to shut down," Oparanya said.
The move comes after President Uhuru Kenyatta asked the governors to accept the little they have received from the National Treasury.
In an address to members of the Nakuru County Assembly, Uhuru said that the government has no more money to fund counties.
National Assembly has proposed that counties get Sh316 billion but the Senate wants them allocated Sh327 billion.
The standoff has affected the operations of governors in different ways as they seek to leave behind legacies.