MOMBASA, Kenya – The ongoing crisis of pending bills in Kenyan counties, which has now escalated into a national issue, has been attributed to unrealistic revenue projections made by county governments.
According to the Controller of Budget (CoB), Margaret Nyakang’o, governors are inflating their revenue expectations, a practice she believes significantly contributes to the growing pile of unpaid bills.
Nyakang’o, speaking at the annual Institute of Certified Secretaries conference in Mombasa, voiced strong concerns about the overestimation of revenue by county governments.
She warned that these inflated projections are leading to spending decisions that cannot be sustained, ultimately exacerbating the backlog of unpaid debts.
“Governors place orders based on higher amounts, eveneir bills on time when the cash is not there,” Nyakang’o explained.
This, in turn, leads to mounting debts as counties are unable to pay th.
The CoB’s remarks were particularly focused on major urban counties like Nairobi and Mombasa, which she identified as frequent offenders in terms of overestimating revenue collections.
For instance, Nairobi County had projected a revenue collection of Sh20 billion but only managed to raise Sh12 billion, leaving a significant shortfall of Sh8 billion.
Such gaps, according to Nyakang’o, directly contribute to the ongoing pending bills crisis.
Nyakang’o also raised alarms about the general lack of financial discipline within county governments.
She highlighted the overpricing of county projects as another major contributor to the financial instability faced by many counties.
“There is a need for greater financial discipline among county governments,” she stated.
Nyakang’o emphasized that unless this issue is addressed, counties will continue to struggle with large amounts of unpaid bills, which impact service delivery.
In response to the CoB’s statements, Ahmed Abdullahi, the Chairman of the Council of Governors (CoG) and the governor of Wajir County, expressed frustration with the current financial system.
He noted that counties only receive 10 percent of the national budget, which amounts to approximately Sh400 billion for the 47 counties.
Despite these limited resources, Abdullahi pointed to the positive impacts of devolution, particularly in sectors like healthcare and early childhood education.
“Since the advent of devolution, more doctors, nurses, and ECDE teachers are on payroll, and our people are receiving better services despite the limited resources,” Abdullahi said.
He acknowledged, however, that more work is still needed to address the challenges counties face, especially in ensuring that they have sufficient resources to meet their obligations.
Abdullahi also criticized the growing bureaucracy within the government, which he believes further limits counties’ financial flexibility.
He argued that while counties are expected to take on more functions, the increasing complexity of the bureaucracy adds to their financial constraints.
Abdullahi also addressed concerns regarding the roads maintenance levy, clarifying that counties are simply seeking their constitutional right to maintain local roads.
“We have no fight with MPs whatsoever,” he said, emphasizing that county governments just want a fair share of resources to manage local infrastructure.
He reiterated the importance of ensuring a more equitable distribution of resources to allow counties to carry out their mandated responsibilities, without being hindered by bureaucratic challenges or insufficient funding.
During the conference, Nyakang’o highlighted the pressing need for financial reforms within the county government system.
She pointed out that the current system, with its financial flow issues, is setting counties up for failure.
“We are being set up for failure,” she warned, stressing the importance of addressing these issues to ensure smoother operations at the county level.
Nyakang’o also reiterated the need for holding governors accountable for the proper use of funds, especially as devolution continues to play a critical role in delivering services to the public.
