Kenya’s county governments are grappling with a growing debt crisis, with the latest County Governments Budget Implementation Review Report by the Controller of Budget (CoB), Dr. Margaret Nyakang’o, revealing staggering figures. Of the Ksh 194 billion county budget, Ksh 149.5 billion is allocated for recurrent expenditure and only Ksh 44.51 billion for development.
Pending bills unsettled financial obligations for goods and services delivered remain a critical issue. Dr. Nyakang’o has urged county governments to prioritize clearing these debts to improve service delivery and business operations.
Top Counties with Pending Bills
As of September 30, 2024, Nairobi City County, under Governor Johnson Sakaja, leads with Ksh 121.06 billion in outstanding bills, followed by:
- Garissa: Ksh 6.07 billion
- Kiambu: Ksh 5.9 billion
- Turkana: Ksh 4.78 billion
- Machakos: Ksh 4.42 billion
- Mombasa: Ksh 3.93 billion
Counties with Significant Pending Bills
Several counties, led by prominent governors, also report significant debts:
- Kisumu (Prof. Anyang’ Nyong’o): Ksh 2.7 billion
- Kisii (Simba Arati): Ksh 2.3 billion
- Tana River (Dhadho Godhana): Ksh 2.1 billion
- Kilifi (Gideon Mung’aro): Ksh 2 billion
- Kajiado (Joseph Ole Lenku): Ksh 2 billion
Smallest Pending Bills
In contrast, some counties report minimal pending bills:
- Lamu (Issa Timamy): Ksh 49 million
- Elgeyo Marakwet (Wisley Rotich): Ksh 67 million
- Nyeri: Ksh 215 million
Legal and Financial Implications
Dr. Nyakang’o reiterated the importance of adhering to regulations, including Public Finance Management (County Governments) Regulations, which require the prioritization of debt payments. The Senate has also mandated counties to clear all verified pending bills by FY 2024/25.
“The accumulation of pending bills negatively affects public service delivery and disrupts business operations. County governments are advised to prioritize the settlement of eligible pending bills in compliance with the law,” said Dr. Nyakang’o.
The debt burden underscores the financial challenges counties face, with development projects often taking a backseat as funds are redirected to settle debts. Moving forward, adherence to financial regulations and improved budgetary discipline will be essential to address this crisis.
