A new report by Controller of Budget Margaret Nyakang’o has revealed widespread delays in payment of contractors and suppliers by county governments, with billions of shillings in pending bills accumulating across the country.
The report shows that county governments continue to delay settlement of verified invoices for goods and services already delivered, leaving contractors under severe financial pressure.
At least 10 counties, including Nairobi, Mombasa, Machakos, Wajir and Garissa, are identified as among those with the highest levels of delayed payments.
According to the findings, some contractors are still waiting for payments as county governments reportedly dispute or decline to settle debts inherited from previous administrations, a situation linked to political disagreements and financial accountability challenges.
By March 31, 2026, all 47 counties had accumulated pending bills amounting to KSh156.84 billion. Out of this, more than KSh84 billion had remained unpaid for over three years, raising serious concerns over compliance with public finance management laws.
The report indicates that Mombasa County had the highest proportion of long-outstanding bills, with 98 percent of its pending obligations aged more than three years.
Other counties with significant levels of long-term arrears include Wajir (80 percent), Nairobi (76 percent), Mandera (75 percent), Murang’a (74 percent), Kiambu (67 percent), Laikipia (65 percent), Embu (65 percent), Machakos (54 percent) and Garissa (52 percent).
At the same time, counties such as Baringo, Bomet, Elgeyo Marakwet, Kericho, Kirinyaga, Kitui, Kwale, Lamu, Makueni, Marsabit, Nandi, Nyandarua and Nyeri were noted to have accumulated a larger share of their pending bills under current county administrations.
Controller of Budget Margaret Nyakang’o warned that the rising stock of unpaid bills poses a major fiscal risk to devolved units, with some counties at risk of failing to clear obligations within their electoral cycles.
She said, “The accumulation of pending bills continues to expose counties to significant financial risk, and there is a real possibility that some may fail to clear these obligations within their electoral cycles.”
The report also highlights the human and economic impact of delayed payments, noting that many contractors are facing severe financial strain, with some forced to close businesses or default on bank loans.
Nairobi County remains the largest debtor, owing KSh81.13 billion. Of this amount, KSh61.6 billion has been outstanding for more than three years, with only a small portion incurred under the current administration.
In Wajir County, pending bills older than three years stand at KSh1.94 billion, while more recent obligations amount to KSh488 million.
Murang’a County has accumulated KSh846.3 million in long-outstanding bills, Kiambu KSh3.56 billion, Laikipia KSh852.1 million, Embu KSh830.3 million, Machakos KSh2.85 billion, and Garissa approximately KSh797.3 million.
The Controller of Budget noted that under the Public Finance Management Act for county governments (2015), counties are required to prioritize the settlement of lawful pending bills in the following financial year.
The report further shows that pending bills of less than one year stand at KSh30 billion, those aged between one and two years at KSh19.45 billion, and those between two and three years at KSh15.22 billion.
Nyakang’o also flagged non-compliance in financial reporting, noting that several counties failed to submit complete breakdowns of their pending bills. Kakamega County was specifically cited for failing to provide a detailed analysis of its outstanding obligations as of March 31, 2026.
