Controller of Budget warns as govt pending bills hit Ksh524.8B
By Mustafa Juma, September 4, 2025The Controller of Budget (CoB), Margaret Nyakang’o, has raised an alarm over Kenya’s ballooning pending bills.
Appearing before the National Assembly’s Budget and Appropriations Committee, chaired by Alego Usonga MP Samuel Atandi on Wednesday, September 3, 2025, Nyakang’o warned that the mounting debt burden is stifling economic growth and threatening the survival of thousands of Small and Medium Enterprises (SMEs).
She further revealed that as of June 30, 2025, the National Government owed a staggering Ksh524.84 billion, up from Ksh516.27 billion the previous year.
State corporations
According to her report, state corporations account for the bulk of the debt at Ksh404.33 billion (77%), mainly arising from unpaid contractor fees, supplier arrears, statutory deductions, and pension obligations.
The remaining Ksh120.51 billion (23%) is owed by Ministries, Departments, and Agencies (MDAs), largely as historical arrears under recurrent and development expenditures.
“As of 30 June 2025, pending bills for the National Government stood at Kshs. 524.84 billion, up from Kshs. 516.27 billion in the previous year. Of this, Kshs. 404.33 billion (77%) was owed by state corporations—mainly contractor payments, supplier arrears, statutory deductions, and pension obligations—while Kshs. 120.51 billion (23%) was owed by MDAs, largely historical bills under recurrent and development expenditures,” she said.
Swift action
She emphasised the urgency of addressing this issue, recommending swift action by the National Treasury.
“I would recommend that the National Treasury should fast-track the verification and settlement of eligible pending bills to ease pressure on the private sector and restore confidence in government payment systems,” she said.
She also recommended better planning and expenditure management to ensure that priority sectors are adequately funded and reduce the government’s overreliance on Article 223 of the Constitution, which allows the Treasury to authorise withdrawals without prior parliamentary approval.
In the 2024/25 financial year alone, withdrawals under Article 223 amounted to Ksh83.96 billion, with the CoB authorising Ksh66.54 billion. Dr Nyakang’o termed this as a violation of the Public Finance Management (PFM) Regulations, 2015, and a sign of weak budget discipline.
“In the FY 2024/25, a total of Kshs. 83.96 billion in withdrawals were authorised by the CS National Treasury under Article 223, of which the Controller of Budget authorised Kshs. 66.54 billion,” Nyakang’o stated.