The National Treasury has frozen 50% of funds to Meru County, sparking a budget crisis amidst a Sh642 million debt dispute and questions over a pledge by President William Ruto.

• The debt stems from a legal battle with Leopard Rock Mico Limited, a French-owned investor, after the termination of a lease in July 2018.
• The Senate is questioning the National Treasury's decision, highlighting President Ruto's public pledge in July 2025 that the national government would assume the debt.
• Meru County officials state they halted payments based on the presidential assurance, a move now being scrutinized for legal adherence despite partial payments made.