Nairobi County's Pending Bills Surge, Crippling Businesses

Nairobi County's pending bills surged by a staggering Sh40 billion in the last financial year, reaching a total of Sh99.06 billion. This increase has severely impacted the cash flow of suppliers and contractors who have provided goods and services to the county.

Nairobi's unpaid bills account for a significant 70% of the Sh153.02 billion owed by devolved units to businesses. This surge in arrears highlights the ongoing disregard by counties for settling their obligations promptly.

The Controller of Budget (CoB) has criticized Nairobi County for failing to prepare a satisfactory payment plan and provide a report on the settlement of pending bills. This lack of transparency and accountability has further exacerbated the cash flow issues faced by businesses.

Kiambu County also experienced a substantial increase in unpaid bills, with arrears rising by Sh2.37 billion to Sh5.87 billion. Mombasa County recorded a similar trend, with its pending bills jumping by Sh760 million to Sh5.87 billion.

The rise in unpaid bills underscores the counties' continued disregard for directives from the presidency and National Treasury to clear arrears and alleviate the cash flow challenges faced by the private sector.