Members of the National Assembly Departmental Committee on Regional Development have interrogated the State Department for Devolution over rising county taxes, accumulated pending bills and management of public assets, as concerns over fiscal discipline in devolved units intensified.

The committee, chaired by Sigor MP Peter Lochakapong, on Tuesday, May 19, 2026, met Principal Secretary Lenasalon at Parliament Buildings while reviewing the State Department’s 2026/27 budget estimates.

MPs raised concerns over what they termed as punitive local levies, delayed transfer of devolved functions, and lack of accountability in county expenditure.

Kabuchai MP Majimbo Kalasinga questioned the transparency of county asset disposal, citing cases where relatively new government vehicles were reportedly lying idle due to minor mechanical faults, while others were being prepared for auction.

“We also want to know which year these vehicles are because some end up being sold to connected individuals,” he said.

James Munyoro (Kigumo) criticised multiple taxation across counties, saying traders were being charged levies in every jurisdiction, making cross-county business increasingly difficult. He cited informal traders, including women transporting farm produce, who face charges that significantly reduce already low earnings.

Rising unpaid bills and Treasury concerns

Lawmakers also demanded clarity on the ballooning stock of county pending bills, with Nairobi City County emerging as the largest debtor.

According to National Treasury data, counties owed suppliers Ksh183 billion as of June 2025, comprising Ksh130.8 billion in recurrent expenditure and Ksh52.2 billion in development-related obligations.

Nairobi City County alone accounts for Ksh86.8 billion in unpaid bills, representing about 47 per cent of the national total.

The figure exceeds its annual budget by Ksh43.2 billion. Treasury data further shows Nairobi’s recurrent unpaid bills at Ksh78.9 billion and development arrears at Ksh7.2 billion, with the Nairobi City County Assembly also owing Ksh650.6 million.

Kilifi County followed with Ksh9.3 billion in arrears, while Machakos County recorded Ksh6.7 billion. Treasury analysis indicates that, on average, pending bills represent about 30 per cent of county budgets, with a significant portion aged beyond one year, including Ksh85.4 billion that is more than three years old.

Budget cuts, funding gaps and implementation challenges

The State Department for Devolution disclosed that its development budget had been reduced from Ksh11.01 billion to Ksh10.62 billion, a cut of Ksh392.2 million, attributed to reduced donor funding under the Joint Devolution Programme.

PS Lenasalon further told the committee that the department is facing implementation challenges after Parliament declined to approve Ksh60 million previously advanced under Article 223 for the Siaya International Trade and Investment Conference, leaving a negative balance.

He also noted that the department is grappling with Ksh2.84 billion in pending bills, most of them historical claims under verification. Despite the constraints, officials highlighted progress in intergovernmental relations regulations and transfer of functions and assets to counties.

The committee is expected to compile its report and table recommendations in the National Assembly after reviewing the submissions.