This archive report was first published on 11 May 2020.
Published on May 11, 2020, a report by the Daily Nation revealed that nearly 10 counties in Kenya owed suppliers a whopping Sh13 billion in bills that had been pending for years.
Despite efforts by President Uhuru Kenyatta to resolve the issue, the Controller of Budget showed that the problem was far from over. Nairobi City County topped the list with a staggering Sh7.1 billion in unpaid bills, followed closely by Narok with Sh943 million.
Other counties that owed significant amounts included Garissa, Mombasa, Kisumu, Vihiga, Kirinyaga, and Turkana. However, some counties disputed the amounts, highlighting the need for verification to ensure that counties get value for money.
The President's intervention was largely due to the adverse impact of unpaid bills on cash flow in the economy. Many suppliers, who ran small-scale businesses, had taken out loans to do business with the counties, only to see their assets auctioned off for failure to repay their loans.
As a result, businesses had collapsed, leading to job losses, and undermining the devolution process that was meant to bring resources closer to the grassroots. However, there was some good news - suppliers in 23 counties had all their legitimate pending bills paid by April 20.
To address this persistent problem, there is a need for greater scrutiny to ensure that genuine business thrives and counties live within their means.
