BUSIA, Kenya — Governor Paul Otuoma has unveiled a financial recovery plan to clear Sh2.6 billion in pending bills owed by the Busia County Government by 2027, even as questions mount over the feasibility of the repayment timeline.
Speaking during a budget accountability forum on Wednesday, Otuoma said the debt, accumulated over several years, has crippled development projects and strained relations with suppliers.
He pledged to settle the bills in phases, citing new austerity measures and increased local revenue collection as the backbone of his plan.
“We have committed to paying these pending bills by 2027 through prudent financial management, expenditure control, and sealing revenue leakages,” Otuoma said.
He added that the county would prioritize verified contractors and service providers cleared by the Office of the Auditor-General.
The governor also noted that his administration had already settled Sh400 million in verified arrears since taking office in 2022. He attributed the remaining burden to inherited debts from previous regimes and inflated procurement claims.
However, members of the County Assembly and civil society groups have pressed the governor for clarity on how the plan will be sustained without hurting essential public services.
“This is a welcome commitment, but the county must show us where the money will come from,” said Jane Were, coordinator of the Busia County Governance Forum. “We need a transparent repayment framework and safeguards against re-accumulation.”
According to the Controller of Budget’s 2024 report, Busia ranks among the top five counties with the highest pending bills relative to its annual development allocation, a situation experts warn could stall devolution gains if not urgently addressed.
Fiscal policy analyst Dr. Peter Nyamweya said Otuoma’s proposal reflects growing pressure on counties to comply with the Public Finance Management Act, 2012, which requires devolved units to prioritize payment of existing obligations before incurring new ones.
“The national Treasury has been pushing counties to clear verified bills to restore confidence among suppliers. If Busia can meet this target, it will set a positive precedent,” he said.
Still, the governor faces skepticism amid a slowing national economy and reduced county disbursements from the exchequer. Treasury data shows Busia’s annual equitable share fell by nearly 8 P.c in the 2024/25 financial year due to lower national revenues.
As the 2027 deadline approaches, Otuoma’s administration must balance fiscal discipline with service delivery, a test that could define his legacy and the county’s financial credibility.
