Trans Nzoia County has been blocked from tapping into its County Revenue Fund until it clears delayed gratuity owed to former employees. The Senate’s action comes after years of unpaid dues, highlighting long-standing financial mismanagement in the county.
During a Thursday hearing, the Senate County Public Accounts Committee (CPAC) reprimanded the county for holding back gratuity payments for more than four years.
The committee instructed the Controller of Budget to freeze any further withdrawals until the county presents a clear and approved plan for settling the arrears.
Governor George Natembeya appeared before CPAC to respond to the Auditor General’s report on the county’s 2024/25 accounts. The report showed that Trans Nzoia had neglected to pay gratuity to staff whose contracts had ended years ago, with the last payment recorded on May 9, 2021.
The total unpaid gratuity stands at Sh52 million. Sh26 million is owed to former staff from the office of ex-Governor Patrick Khaemba, while the remaining Sh26 million covers employees from other county departments.
“This is unfair,” said CPAC Chairperson Senator Moses Kajwang. “Officers who have already exited public service are fully entitled to the payments. You must prioritise this payment.”
Governor Natembeya admitted that the county had fallen behind on the payments but attributed the delay to financial challenges rather than neglect. “It is an unfortunate situation. I am alive to the fact that we are not paying the money,” he said. “There is no malice. It is just circumstances.”
He added that previous administrations had failed to remit statutory deductions on time, forcing the county to divert resources to settle accumulated arrears. The delayed remittances, he explained, had incurred penalties and tax obligations, putting additional pressure on the county’s finances.
Senator Kajwang rejected the explanation, saying gratuity obligations were independent of past pension remittance issues. “Gratuity has nothing to do with pension schemes. It has everything to do with internal inefficiencies,” he said, urging the county to immediately address the backlog.
Nandi Senator Samson Cherargei reinforced the committee’s stance, emphasizing that gratuity is a contractual commitment, not a discretionary benefit. “Gratuity is not a privilege; it is a plan. The governor must roll out a payment plan to clear this debt,” he said.
CPAC directed the Controller of Budget not to approve any further withdrawals from the county’s fund unless Governor Natembeya submits a payout plan endorsed by both the committee and the Auditor General. The governor accepted the directive and pledged to release funds for the payments through a supplementary budget.
