Nairobi City County has recorded one of its sharpest reductions in debt in recent years, cutting its pending bills by close to Ksh35 billion, according to the latest County Governments Budget Implementation Review Report by the Controller of Budget.

As of June 30, 2024, the county reported pending bills amounting to Ksh121.78 billion. Within the 2024/25 Financial Year, the county executive cleared Ksh7.56 billion, Ksh 5.84 billion for recurrent programmes and Ksh 1.72 billion for development programs. The County Assembly also settled Ksh283.17 million of its pending bills.

Following debt reconciliation, negotiations with creditors, and arbitration through the courts, the outstanding pending bills dropped to Ksh86.77 billion by the end of June 2025.

The county executive exceeded its own pledge, having committed to pay Ksh 800 million but ultimately allocating more than nine times that amount toward debt settlement. The report attributes this progress to enhanced financial discipline, improved revenue mobilization, and better budget absorption. It notes that timely bill settlement not only unlocks stalled projects but also injects liquidity into the local economy.

Separately, Governor Johnson Sakaja said a review of the debt register had exposed irregular claims that must be verified before inclusion. He noted that the county’s legal department is reassessing all legal bills, while the administration has hired more legal officers to reduce reliance on outsourced legal services.

“We have already reduced them by close to Ksh 39 billion and will continue with the review process,” Sakaja said in a radio interview on Thursday.

He emphasized that Nairobi’s financial challenges are deeply rooted, with historical debts attracting heavy interest and penalties over the years.

“As we make Nairobi work, we must also resolve past issues, because Nairobi didn’t start in 2022,” he remarked.