Nairobi County's pending bills surged by Sh40 billion in the last financial year under the management of the Nairobi Metropolitan Services. This increase, from Sh54.32 billion to Sh99.06 billion, has exacerbated cash flow issues for suppliers and contractors.
Nairobi's unpaid bills account for 70% of the Sh153.02 billion owed by devolved units to businesses. This surge of Sh57 billion in just 12 months underscores the persistent failure of counties to settle their obligations.
The Controller of Budget, Margaret Nyakango, noted that Nairobi County failed to develop a satisfactory payment plan for its pending bills. Additionally, the county treasury did not provide a report on the settlement of these bills as of June 30, 2022.
Kiambu County experienced the second-largest increase in unpaid bills, with arrears rising by Sh2.37 billion to Sh5.87 billion. Mombasa County also saw a significant jump of Sh760 million, bringing its total unpaid bills to Sh5.87 billion.
These increases highlight the counties' disregard for directives from the presidency and National Treasury to clear their arrears and alleviate cash flow constraints in the private sector.