Kiambu County has accumulated Sh6.5 billion in unpaid bills, making it one of the top Counties with debt, according to the Controller of Budget, Margaret Nyakang’o’s, report for the 2023/24 financial year.
This places Kiambu second, behind Nairobi, which leads with Sh118 billion in pending bills, while counties across the country face a collective total of over Sh181 billion.
In the report, Nyakang’o stated that Kiambu reported pending bills amounting to sh5.94 billion at the beginning of the financial year, of which Sh3.57 billion was for recurrent expenditure and Sh2.36 billion for development activities.
Despite settling Sh387 million in bills during the year, Sh164 million for recurrent expenses and Sh223 million for development, the county’s debt increased to Sh6.5 billion by the end of the financial year due to the accumulation of new unpaid obligations.
This is a total increase of Sh600 million from the 2022/2023 financial year whereby the pending bills amounted to sh5.9 billion.
Additionally, the Kiambu County Assembly reported sh100 million in outstanding bills as of June 30, 2024.
- MPs want pending bills owed to road contractors cleared
- Kenya’s pending bills up by Sh102b on growing development expenditure
According to Nyakang’o, the rising debt in Kiambu is a key obstacle to effective budget implementation.
“The high level of pending bills, which amounted to Sh6.4 billion as of June 2024, has hampered effective budget implementation,” the report states.
Nyakang’o further pointed out that Kiambu’s County Treasury has failed to adhere to its pending bills payment plan.
Other counties also face mounting debts, with Machakos at Sh4.2 billion, Mombasa Sh4.4 billion, Bungoma Sh3.5 billion, and Kisumu Sh3.2 billion among the hardest hit.
However, Elgeyo Marakwet stands out with only sh1.4 million in pending bills, demonstrating better fiscal discipline.
The Controller of Budget’s report calls for urgent reforms to address the pending bills crisis.
Counties like Kiambu are urged to prioritize the payment of outstanding debts to ensure smooth service delivery and prevent further disruptions to development projects.
– By Sylvia Wanjohi, KNA
Email your news TIPS to Editor@nairobilawmonthly.com, and to advertise with us, call +254715061658 anytime of the day
