Hard truths. Bold Insights. Real talk.
Nakuru, Wajir, Nairobi, Siaya and Mandera recorded the largest shares of manual payroll payments among the counties flagged in the report. Meru, Elgeyo Marakwet, Kitui, Busia and Lamu were also among the counties that continued to process substantial payments outside the Human Resources Information System (HRIS).
The long-running debts have left suppliers, contractors and county workers waiting for payment, with Nairobi carrying the biggest share of the historical obligations at Sh49 billion.
The county had an approved supplementary budget of Sh25.65 billion, including Sh8.83 billion for development and Sh16.81 billion for recurrent programmes.
The committee, chaired by Luanda MP Dick Maungu, is examining Auditor-General Nancy Gathungu’s reports for the financial years under review, with the school accounting officers expected to respond to various queries.
According to the reports cited by The Standard, audits tabled before the National Assembly in August found cases involving unauthorised levies, spending without proper supporting documents, failure to collect outstanding fees, unexplained cash withdrawals, unapproved bank loans, weaknesses in procurement systems and questionable investments by some schools.
The National Assembly Committee on Constitutional Implementation Oversight says the current legal framework has left a large amount of public money outside the direct reach of the Controller of Budget, with 75 funds and levies at the national level and several others at the county level operating as potential blind spots.
Speaking to business executives at Silo Modern Farmhouse in Kansas City, Missouri, USA, on Friday, September 18, 2026, the Democracy for the Citizens Party (DCP) leader said delayed government payments were hurting Kenyans whose livelihoods depended on contracts with public institutions.
In the audit of the county executive for the year ended June 2024, the Auditor-General questioned the independence and effectiveness of the internal audit function. The audit noted that the internal audit unit was placed under the finance department and that its approved work plan had not been fully implemented.
Margaret Nyakang’o said agencies do not automatically qualify for funding simply because they claim they need money outside their approved allocations.
State House had the largest share of rejected requests among the institutions under the Presidency, with Sh7.3 billion denied from applications that had received Treasury approval.
The President also signed the Public Finance Management (Amendment) Bill 2025, bringing new provisions into the system used to manage public resources at both national and county levels.
The Auditor-General questioned the payment, saying KESSHA is a welfare organisation for school principals and is not recognised within the Government funding system.
Ndeti said the Assembly had altered allocations by Sh853.96 million after the Executive presented its budget. She said the original plan was balanced and based on the 2026 County Fiscal Strategy Paper (CFSP), but the version passed by the Assembly on August 18 contained changes that she considers unlawful.
The new system will require suppliers doing business with government entities to generate valid eTIMS invoices before submitting them for payment through IFMIS.
Under the proposed framework, Treasury would be responsible for hosting, administering and maintaining the system, as well as its core infrastructure and security.
Makueni County told the Senate Committee on Devolution and Intergovernmental Relations that it has chartered municipalities and governance structures in place under the Urban Areas and Cities Act, prompting praise from the committee and discussion of legal and revenue framework issues.
Launching the report on Thursday, Senate Speaker Amason Kingi said the new index provides the Senate with a reliable way of evaluating how counties manage public resources.
The second-term lawmaker, who is seeking the Bungoma governorship in 2027, claimed politically connected contractors have routinely been prioritised over county employees whenever funds are released, resulting in delayed salaries and poor public services despite the county receiving billions of shillings annually.
The Office of the Controller of Budget is mandated to oversee the implementation of national and county government budgets by authorising withdrawals from public funds. It also prepares statutory reports, publicises its findings and investigates the use of public money either on its own initiative or following complaints from members of the public.
Among the areas where Nairobi fell short were clearing pending bills, increasing its own-source revenue collection and improving payroll management.
According to a public notice published in the MyGov publication of July 14, 2026, the launch will take place at the Kenyatta International Convention Centre (KICC) from 8:30 a.m. and will bring together government officials, lawmakers, stakeholders and members of the public.
Oburu said he encouraged Ruto to occasionally exercise what he described as "benevolent dictatorship" by standing firm on policies that will strengthen the country's future.
The new law creates a legal and institutional framework for the establishment, governance and management of the Sovereign Wealth Fund, fulfilling a commitment President Ruto made during his 2025 State of the Nation Address to establish a long-term national savings vehicle alongside the National Infrastructure Fund.
Mbadi said while Kenyans have a constitutional right to challenge government decisions in court, leaders should avoid making conclusive statements on matters that are still awaiting judicial determination.
At the centre of the dispute is a growing fallout between Governor Johnson Sakaja’s administration and Members of the County Assembly, with legislators accusing the executive of failing to provide sufficient information on key financial proposals before seeking approval.
According to the Cabinet, the decision follows a comprehensive Government payroll audit that exposed widespread weaknesses in payroll governance across public institutions.
Data contained in the Controller of Budget's quarterly report shows that the number of commercial bank accounts operated by counties increased from 6,386 in December 2025 to 6,585 by the end of March 2026.
Speaking on Radio Generation on Monday, Omtatah alleged that legal provisions within public finance laws had created opportunities for abuse and opened avenues for funds to be handled outside constitutional requirements.
The Controller of Budget’s review for the period ending March 31, 2026 says Kisii County collected only a fraction of its own-source revenue target, recorded low development absorption, and carried significant trade payables and a wage bill above the regulatory ceiling.
The audit showed that the county had accumulated pending bills amounting to Sh1.52 billion. Of this, Sh1.09 billion had remained unpaid for more than one year, while about Sh700 million had stayed unsettled for over three years.