Pending bills by counties rose by Sh11.74 billion in the year ended June, sinking the private sector deeper into cash-flow woes. Data from the Controller of Budget (CoB) shows that pending bills hit Sh164.76 billion in the year to June, compared to Sh153.02 billion in the period ending June 2022.
The spike highlights the mounting cashflow woes on contractors and firms that did business with the devolved units, with dozens being forced to shut down, tap loans, or cut down staff amid the funding hitches.
The CoB data shows that Nairobi City County topped the charts with a jump of Sh8.27 billion to Sh107.33 billion followed by Wajir whose unpaid bills increased by Sh2 billion to Sh5.5 billion in the period.
CoB Margaret Nyakang'o attributed the increase to reluctance by some of the new county administrations who took office in September last year and delays in cash transfers.
“The high level of pending bills may be attributed to the following reasons: delays in disbursing the equitable share by the National Treasury and political interference and refusal by successive governments to honour obligations,” Dr Nyakang'o says in the latest report.
Other counties that recorded a significant rise in the pending bills include Machakos whose arrears grew by Sh1.77 billion to Sh2.58 billion, and Laikipia whose figures rose by Sh1.2 billion to Sh2 billion.
