Suppliers Furious Over Nairobi's Laughable Debt Plan

Nairobi County Approves Small Portion of Pending Bills Payment.

NAIROBI, Kenya - The Nairobi County Assembly has approved just 1% of the Sh121.06 billion owed to suppliers and contractors. This Sh1.2 billion allocation was part of the 2024-25 supplementary budget.

According to the Controller of Budget's report, Kenyan counties collectively owe Sh194.01 billion. Nairobi County alone accounts for 62% of this debt.

Controller of Budget Margaret Nyakang'o urged counties to prioritize settling these bills. She said unpaid bills negatively impact public services and businesses. The law requires counties to pay eligible pending bills first from their budgets.

The Nairobi Assembly's Finance Committee called the Sh1.2 billion allocation a "step in the right direction." The supplementary budget sets aside an additional Sh1.26 billion for other creditor payments.

However, the city administration is being criticized over the integrity of some pending bills. Allegedly inflated legal services costs are among those questioned.

County spending priorities have long been controversial. The courts recently weighed in, declaring it illegal for counties to spend less than 30% on development. High Court judges instructed 20 counties and the National Treasury to ensure their budgets meet this threshold.

The ruling came in response to a lawsuit filed by the Kenya Human Rights Commission in 2024. The suit claimed the national and county governments were spending less than 10% on development projects.
 

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