Doing business with some county governments poses significant risks as pending bills escalate, plunging suppliers into financial hardship. A recent report by Controller of Budget Margaret Nyakang’o reveals that county-level pending bills surged by Sh15 billion across 20 counties within three months, totaling Sh168 billion by September 2024.
Nairobi and Turkana lead in debt accumulation, with pending bills rising by Sh2.61 billion and Sh4.02 billion, respectively. Governors Johnson Sakaja and Jeremiah Lomorukai have faced scrutiny for these increases, highlighting a worsening trend that has left many suppliers in dire straits, with debts in some cases dating back a decade.
While counties like Bungoma and Mombasa reduced their bills by over Sh1 billion each, others, including Nyandarua, Migori, Narok, and Nyamira, saw steep increases. Counties like Tana River, Kitui, and Laikipia showed no changes during this period.
The national government also contributes to the crisis, with pending bills reaching Sh664 billion. Nyakang’o urges counties to prioritize debt clearance in their budgets and adhere to Senate resolutions, which mandate settling verified debts by FY 2024-25. Failure to address these obligations continues to disrupt business operations and public service delivery.
Counties reducing debts, such as Kilifi, Kwale, and Kakamega, demonstrate some progress, but the overall debt burden remains a critical concern for economic stability.
