Thousands of county employees risk going into retirement without full access to money deducted from their earnings after devolved governments failed to remit more than Sh100 billion in salaries and statutory payments, with some of the outstanding amounts dating back more than three years.
The latest figures from the Controller of Budget show that counties had accumulated Sh100.24 billion in unpaid salaries and statutory deductions by the end of the 2025-26 financial year.
“County governments reported outstanding salary arrears and statutory deductions trade payables totalling Sh100.24 billion,” Nyakang’o says in the County Budget Implementation Review Report for the financial year 2025-26.
County executives were responsible for Sh98.44 billion of the outstanding amount, while county assemblies had accumulated a further Sh1.80 billion.
The unpaid statutory deductions are a particular concern for workers because they include amounts that should have been forwarded to institutions responsible for receiving such payments, including pension firms.
This means employees working in county hospitals, offices and other public facilities may have had deductions taken from their salaries without the money being transferred on time to the institutions where it was supposed to be held or invested.
The situation is most difficult in Nairobi, which accounted for the overwhelming share of the debt reported by county executives.
The Nairobi county executive had outstanding salary arrears and statutory deductions of Sh85.78 billion. Of this, Sh49 billion had not been paid for more than three years.
Another Sh13.53 billion had been outstanding for between two and three years, while Sh11.89 billion had remained unpaid for between one and two years. A further Sh11.36 billion was less than a year old.
The Nairobi County Assembly had also accumulated Sh162.78 million in salary arrears and statutory deductions.
Machakos ranked second among county executives, with outstanding obligations of Sh1.95 billion. The county had Sh1.62 billion that was less than a year old, while Sh325.51 million had remained unpaid for more than three years.
Mombasa followed with Sh1.33 billion in outstanding obligations. More than half of that amount, Sh700.02 million, had been unpaid for over three years.
Murang’a reported Sh1.10 billion, while Meru had Sh901.21 million in outstanding county executive obligations. Kiambu followed with Sh686.71 million.
Bungoma and Wajir each reported more than Sh662 million owed in county executive obligations.
In Bungoma, Sh580.26 million had remained unpaid for more than three years. Wajir reported Sh662.28 million, with the entire amount having been outstanding for more than three years.
Taita Taveta had accumulated Sh629.89 million, of which Sh452.27 million had remained unpaid for more than three years.
Kisii reported Sh631.68 million in outstanding county executive obligations, while Nakuru had Sh535.53 million.
Nakuru's liability was largely made up of older debts, with Sh532.72 million having remained outstanding for between two and three years.
County assemblies in some parts of the country were also carrying sizeable unpaid obligations.
Busia County Assembly reported Sh506.63 million, including Sh315.70 million that had remained unpaid for between one and two years.
Migori County Assembly had outstanding obligations of Sh495.61 million, with Sh469.34 million having remained unpaid for more than three years.
The figures show that the problem stretches across different levels of county administration, with both executives and assemblies reporting unpaid salaries and statutory deductions.
For county employees, the delays could have effects beyond their current employment, particularly where deductions meant for retirement savings are involved. Money taken from workers' pay is expected to be remitted to the relevant institutions, making prolonged delays a concern for employees planning for life after public service.
With some of the liabilities having remained unsettled for several years, workers face uncertainty over whether all deductions made from their salaries have reached the institutions meant to receive them.