Nairobi leads eight counties with Sh70.2 billion in debts unpaid for more than three years

A total of Sh70.23 billion owed by eight county governments has remained unpaid for more than three years, exposing suppliers, contractors and employees to prolonged delays in receiving money owed to them.

In her Budget Implementation Review Report for the financial year 2025/26, Controller of Budget Margaret Nyakang’o said the old debts were concentrated in Mombasa, Wajir, Nairobi, Kiambu, Embu, Machakos, Garissa and Taita Taveta, where more than half of the trade payables had remained unsettled for at least three years.

Mombasa had the highest share of old trade payables at 88 per cent, followed by Wajir at 80 per cent, Nairobi at 76 per cent, Kiambu at 67 per cent and Embu at 65 per cent.

Machakos recorded 54 per cent, while Garissa and Taita Taveta had 52 per cent and 51 per cent respectively.

Meanwhile, Nairobi had the largest stock of historical debt among the eight counties at Sh49 billion.

It was followed by Kiambu with Sh3.2 billion, Mombasa Sh2.95 billion, Wajir Sh1.9 billion, Machakos Sh1.39 billion, Taita Taveta Sh1.2 billion, Embu Sh822.3 million and Garissa Sh182.98 million.

“There are significant risks for county executives in settling their bills,” Nyakang’o said, referring to the large pending-bills portfolio.

The report also highlighted Vihiga, where Governor Wilber Ottichilo had Sh790.57 million in pending bills that were more than three years old, despite the county not incurring new debts since he won a second term in 2022.

By June 30, 2026, counties had accumulated Sh172.53 billion in trade payables, made up of Sh126.40 billion for recurrent activities and Sh46.15 billion for development.

County assemblies accounted for Sh6.4 billion of the total.

Nairobi alone accounted for Sh86.9 billion, slightly more than half of the overall trade payables.

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Other counties with large amounts included Kilifi at Sh7.8 billion, Kiambu at Sh5.6 billion, Machakos at Sh4.28 billion, Narok at Sh4.17 billion, Mandera at Sh3.79 billion, Wajir at Sh3.1 billion, Nakuru at Sh3 billion and Turkana at Sh2.82 billion.

A trade payable is an unsettled financial obligation at the end of a financial year arising from goods or services that were properly procured, delivered or rendered but had not been paid for.

Nyakang’o said several counties had failed to follow their payment plans for outstanding trade payables.

Under Regulation 55(2) (b) of the Public Finance Management (County Governments) Regulations, 2015, eligible trade payables should be prioritised as a first charge in the subsequent financial year.

The financial pressure has continued to grow, with counties accumulating more than Sh95.44 billion in new debts since 2022.

Mandera recorded the highest amount accumulated in a single financial year at Sh2.2 billion. It was followed by Machakos at Sh1.84 billion, Kilifi Sh1.68 billion, Turkana Sh1.53 billion, Kiambu Sh1.47 billion and Meru Sh1.44 billion.

Kakamega accumulated Sh1.23 billion, Busia Sh1.12 billion, Bomet Sh1.1 billion, Kisii Sh1.06 billion and Siaya Sh1.03 billion.

County employees were also owed large sums, with outstanding salary arrears and statutory deductions reaching Sh100.24 billion by June 30.

County executives accounted for Sh98.44 billion, while county assemblies accounted for Sh1.80 billion.

More than Sh52.45 billion of the amount had remained outstanding for at least three years.

The report raised concern that some counties may have deducted employees’ benefits without remitting the money to pension schemes, potentially affecting retirees.

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