Nairobi County tops on pending bill totalling KES 100 billion
Nairobi County government is leading the other 46 counties in pending bills accounting for 64 per cent of all pending bills in the counties.
According to the most recent Controller of Budget report, counties reported accumulated pending invoices of KES161.36 billion as of September 30, 2022.
They were KES 33.98 billion for development and KES 127.38 billion for recurrent spending.
Nairobi County owes up to KES 100.36 billion to vendors.
Other counties with large pending bills include Wajir, which has KES 5.50 billion, Kiambu, which has KES 4.81 billion, and Mombasa, which has KES 4.51 billion.
Mandera County is the only county that did not report any pending bills.
At the same it has emerged that all 47 counties are only collecting 16 percent of their own-source revenue potential, resulting in a strain on service delivery.
The Commission on Revenue Allocation (CRA) stated earlier this week that counties have been performing poorly in collecting their own-source revenue since the commencement of devolution.
Humphrey Wattanga, vice-chairperson of the CRA, disclosed that the 47 devolved units have only handled KES 306 billion in internal income since 2013, compared to KES 3.6 trillion counties have received from the national government over the same period.
As a result, county administrations have become unduly reliant on finances from the national government derived from an equitable share of revenue.
“Counties are currently at only 16 percent of their potential in terms of collection. From the commencement of devolution to date, counties in totality have collected KES 306 billion as their own source revenue,” Wattanga said.
According to CoB, county governments received KES 6.17 billion in on source revenue, a 10.7 per cent of the annual target and a decline compared to KES 6.76 billion generated in the First Quarter of FY 2021/22.
The report shows Isiolo (49 per cent), Narok (38.7 per cent), Samburu (33.3 per cent), Vihiga (27.8 per cent) and Nyeri (26.3 per cent) counties exceeded the first quarter expectation of 25 per cent of the yearly own source revenue collection target.
Those with the lowest performance were Nyamira at 4.5 per cent, Bomet at 5.8 per cent, Kilifi at 5.8 per cent, Murang’a at 4 per cent and Kajiado at 3.4 per cent.
The Council of Governors has often point an accusing finger on the slow disbursement of funds from the National Treasury for the accumulation of pending bills.
To guarantee effective budget implementation in the counties, the Controller of Budget urged the National Treasury to ensure that the equitable share of income is disbursed in accordance with the Approved Disbursement Schedule of the County Allocation of Revenue Act, 2022.
The CoB also reminded County Executive Committee Members in charge of finance to ensure that designated Fund Administrators write and submit quarterly reports in accordance with the legislation.
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