Controller of Budget Agnes Odhiambo has threatened to stop disbursing funds to Mombasa County following a deal struck by Governor Hassan Joho.
In a letter to the governor, Ms Odhiambo ordered an immediate withdrawal of "enhanced allowances" given to nurses.
The letter further explains that the allowances are unlawful since they have not been regulated by the Salaries and Remuneration Commission (SRC).
"The office is aware that Mombasa County Government is paying enhanced allowances to nurses contrary to those approved by SRC.
"The purpose of this letter is to request that you do not pay any enhanced allowances to the nurses until approval is granted by SRC," the letter read in part.
The letter goes on to warn the governor that failure to comply with the ultimatum will call for serious sanctions.
"Please note that failure to comply with this request could be deemed as a serious material breach and occasion stoppage of transfer of funds in line Article 225(3) of the Constitution," the letter reads.
Article 225(3) of the Constitution states: "Legislation in clause 2 may authorize the Cabinet Secretary responsible for finance to stop the transfer of funds to a State organ or any other public entity."
Nurses on strike
Governor Joho and his Machakos, Kwale and Migori counterparts approved the perks after nurses threatened to withdraw their services to agitate for the enactment of a CRB signed with the government.
The Ministry of Health and the Council of Governors has since resolved to hire nurses on contract to attend to patience at government hospitals.