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Western08 July 2026 - 07:45

Ottichilo prioritises pending bills in final county budget

Ottichilo disclosed a week ago the county had accumulated pending bills amounting to Sh1.171 billion.

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by HILTON OTENYO
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Vihiga Governor Wilber Ottichilo displays the Vihiga County Budget and Appropriation Bill, 2026, together with finance executive Mulongo Onzere at the county headquarters in Mbale on July 6, 2026 /HILTON OTENYO

Vihiga Governor Wilber Ottichilo has assented to the County Budget and Appropriation Bill, 2026, into law, authorising the expenditure of the approved Sh7.72 billion budget for the 2026–27 financial year.

The Bill is his final one as he concludes his second and final term in office.

Ottichilo said his administration will prioritise the payment of pending bills incurred up to June 2026.

He spoke after the signing ceremony at the county headquarters on Monday.

Ottichilo disclosed a week ago the county had accumulated pending bills amounting to Sh1.171 billion.

“We will focus on the completion and operationalisation of stalled projects for the benefit of residents and strengthening county communication systems to improve internal coordination and external dissemination of information on county projects, programmes and activities,” he said.

He said the 2026–27 budget will support service delivery, the completion of ongoing development initiatives and enhance transparency in the implementation of county programmes.

The governor directed the department of finance and economic planning to immediately start the procurement planning process ahead of the Controller of Budget’s approval and upload of the budget.

He said input from residents through public participation, the county assembly and the department of finance and economic planning helped shape budget priorities and resource allocation for key development programmes and services.

The county assembly approved the Sh7.72 billion county budget for the current financial year last month.

The budget is Sh820 million higher than the Sh6.9 billion approved for the 2025–26 financial year, reflecting increased allocations from the national government and grants, including the affirmative action allocation for small counties.

The budget comprises Sh6.08 billion from the equitable share, Sh1.17 billion in conditional and unconditional grants and Sh472 million from own-source revenue.

The approved estimates comprise Sh5.26 billion, representing 70 per cent, for recurrent expenditure and Sh2.32 billion, representing 30 per cent, for development expenditure.

Recurrent expenditure has risen from Sh4.71 billion in the 2025–26 financial year to Sh5.26 billion, while development funding has increased marginally from Sh2.2 billion to Sh2.32 billion.

This means much of the Sh820 million increase in the overall budget this year will go towards salaries, operations and existing commitments rather than new projects.

Health received the lion’s share of the budget at Sh1.94 billion, while Sh500 million has been earmarked for the Ward Development Programme to ensure the equitable distribution of projects across all 25 wards.

The department of education and technical vocational training received Sh594 million, including a Sh100 million allocation for bursary support that has been reintroduced.

Some Sh402.5 million has been allocated to settle accumulated pending bills.

The amount represents about a third of the Sh1.171 billion in pending bills previously disclosed by the county.

Finance expert Evans Kamadi cautiously welcomed the increase in the budget, saying implementation would depend on realistic revenue projections and fiscal discipline.

“An increased budget is welcome if it translates into improved service delivery and accelerated development. However, the county must demonstrate that its revenue projections are realistic and achievable,” he said.

“There is also a need to enhance own-source revenue collection and ensure the prudent use of public funds to avoid widening the financing gap and accumulating more pending bills.” 

INSTANT ANALYSIS

Governor Ottichilo’s final Sh7.72 billion budget prioritises legacy stabilisation over expansion. While total funding rose by Sh820 million, a heavy 70 per cent recurrent allocation swallows most gains. Addressing stalled projects and a fraction of the Sh1.171 billion pending bills shows fiscal responsibility, yet success hinges heavily on realistic revenue collection.

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