Kenya’s county governments are facing a growing financial strain, with some at risk of halting most operations for more than two years if pending bills are not addressed.
The unpaid obligations, which cover staff salaries and ongoing development projects, have reached levels that could paralyze essential services.
A recent report from the Commission on Revenue Allocation (CRA), submitted to Parliament, reveals that at least 17 counties owe more than 20 per cent of their annual revenue in pending bills.
Suppliers and contractors are increasingly under pressure, with many struggling to maintain their businesses due to delayed payments.
“The accumulation of pending bills by county governments has a negative effect on suppliers of goods and services. County governments should therefore prioritise the payment of pending bills,” the report states.
Nairobi County tops the list with Sh86.8 billion in pending bills, representing 249.5 per cent of its annual revenue. This means that dedicating all its income to debt repayment would take over two years to clear the backlog. Nairobi alone accounts for nearly half of all county debts nationwide.
Other counties facing severe financial strain include Kilifi, with Sh9.3 billion in pending bills (55.9 per cent of revenue), Machakos (Sh6.7 billion, 54.4 per cent), and Kiambu (Sh7.9 billion, 42.2 per cent).
Busia, Tana River, and Wajir also owe substantial sums, equivalent to 38.3 per cent, 31.5 per cent, and 31.2 per cent of their annual revenue respectively.
Several other counties owe more than 20 per cent of their revenue, including Taita Taveta (29.5 per cent), Bungoma (27.5 per cent), Kajiado (27.1 per cent), Laikipia (26 per cent), Garissa (26.3 per cent), Embu (25.8 per cent), Kericho (25.6 per cent), Mombasa (25.4 per cent), Siaya (23 per cent), Murang’a (21.5 per cent), and Nyandarua (21.2 per cent).
In contrast, Narok, Elgeyo Marakwet, and Lamu reported pending bills below one per cent of their annual revenue, showing sharp differences in financial management across counties.
Overall, as of June 30, 2025, the 47 counties owed Sh176.9 billion to suppliers and contractors. County executives are responsible for Sh171.7 billion (97.1 per cent), while county assemblies account for Sh5.2 billion (2.9 per cent).
Recurrent expenditure constitutes 71.7 per cent (Sh126.9 billion) of the total, with development-related bills making up 28.3 per cent (Sh50 billion).
Among recurrent pending bills, Nairobi tops the list with Sh79.6 billion, followed by Kiambu (Sh4.5 billion), Machakos (Sh4.03 billion), Kilifi (Sh3.88 billion), Nakuru (Sh3 billion), and Mombasa (Sh2.55 billion). Narok reported no recurrent pending bills during the period.
CRA attributes the surge in pending bills to poor own-source revenue collection and counties failing to prioritise repayment of existing obligations before taking on new spending commitments.
