Kenya Counties Face Massive Revenue Cuts

Senate Proposes Withholding County Funds to Clear Debts.

The Senate wants to let the National Treasury keep some county money. The money would pay off county debts.

Homa Bay Senator Moses Kajwang leads this effort. His committee wants a law to allow the Treasury to hold back funds.

This could upset governors. They face pressure over unpaid bills.

The committee found many counties owe money for years. Some do not pay even when required by law.

Counties keep getting new bills without paying old ones. The total county debt was Sh168.62 billion in September 2023.

Unpaid bills hurt businesses that work for counties. It makes it hard for counties to provide services.

Nairobi owes the most at Sh121.06 billion. Garissa, Kiambu, Turkana, Machakos, and Mombasa also have high debts.

Debts in 20 counties jumped Sh15 billion from July to September 2023. Nairobi's went up Sh2.61 billion. Turkana's rose Sh4.02 billion.

The Senate committee thinks letting the Treasury withhold money could help fix the problem. It would ensure debts get paid.
 

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