- A clash looms between senators and the governors after the lawmakers ordered the county bosses to clear pending bills by the end of June.
- The development comes even as the lawmakers directed Controller of Budget Margaret Nyakang’o to appear before them to explain why the counties have continued to accumulate debts.
Image: FILE
A clash looms between senators and governors after the lawmakers ordered the county bosses to clear pending bills by end of June.
The development comes even as the lawmakers directed Controller of Budget Margaret Nyakang’o to appear before them to explain why the counties have continued to accumulate debts.
Latest report by Nyakang'o shows that counties owe their suppliers and contractors in excess of Sh156.3 billion.
The country budget controller approves the release of funds to the county and national government agencies by the National Treasury.
In a heated debate in the chamber, senators said huge pending bills in counties is causing pain and suffering to businesses.
They said many businesses have closed shop while others have been auctioned by banks.
Consequently, the lawmakers want all county governments to pay verified pending bills – of less than Sh1 billion – by the end of this financial year.
Those above Sh1 billion, the senators said, should be cleared by the end of the financial year 2024-25.
The lawmakers asked the counties to prioritise payment of pending bills as a first charge on the County Revenue Fund.
“If we do not compel county governments to pay their pending bills by the end of this Financial Year, we will create a monster that we will never resolve,” said Narok Senator Ledama Olekina.
He warned that prime county properties including lands and buildings could soon be invaded by those demanding payments.
“Very soon, you will see buildings of national heritage being put up for sale,” he said.
The directive is likely to put the senators at war with the governors who have often blamed the delayed release of funds by the Treasury for the huge pending bills.
Senate Majority Leader Aaron Cheruiyot said people have stopped doing business with county governments.
“Unless the governor is your personal friend or your father, you cannot try because you will be auctioned,” he said.
“If we continue to stare as our counties make the economic mess, in a few years, all the devolved funds will go to people who are owed money.”
Nandi Senator Samson Cherargei blamed governors for the accumulation of the pending bills.
"If you are not properly connected, or you don't know the governor, will you suffer. People are suffering and as the Senate, we must come to their rescue," he said.
According to the Budget Implementation Review Report for the county government for the first half of the current financial year, Nairobi county accumulated the highest amount of pending bills.
The city county has accumulated debt in excess of Sh107 billion.
Machakos county has Sh3 billion in pending bills , Mandera has Sh3 billion, Busia has Sh2.2 billion, Embu Sh1.9 billion, Laikipia Sh1.7 billion and Wajir Sh1.6 billion.
Kisumu has pending bills worth Sh1.6 billion, Tana River Sh1.6 billion, Nakuru Sh1.4 billion, Kakamega Sh1.4billion, Narok Sh1.4 billion, Turkana Sh1.4 billion and Kajiado Sh1.3 billion.
Kilifi Sh1.3 billion, Kisii Sh1.2 billion, Vihiga Sh1.1 billion, Bungoma Sh1.1 billion, Trans-Nzoia Sh1billion, Migori Sh1 billion, Homa Bay Sh921 million and Taita-Taveta Sh791 million respectively.
Other counties with huge debts Murang’a (Sh700 million, Garissa (Sh663 million), Meru (Sh648 million), Kirinyaga (Sh636 million), Bomet (Sh512million) and Siaya (Sh485 million)
“Unscrupulous governors will clap hands when businessmen rush to court, now that most provisions of that Act of Parliament have been declared unconstitutional, in order to attach properties owned by county governments,” Olekina said.