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Senators have directed the Controller of Budget (CoB) Margaret Nyakang’o to appear before them to explain why the devolved units are still owing contractors and suppliers billions of shillings in pending bills.

According to the County Government’s Budget Implementation Review Report for the first half of the financial year 2023/24, counties have accumulated a total of Sh156.3 billion in pending bills.

Nairobi county government has accumulated Sh107 billion followed by Kiambu and Mombasa at Sh5.7 billion and Sh3.9 billion, respectively.

Senators argued that the accumulated pending bills in counties have significantly affected service providers in the counties leading to closure of businesses, stalling of county projects, adversely affecting economic growth, service delivery and ultimately, slowing down the country’s economic growth.

In a motion tabled by Narok Senator Ledama ole Kina, the senators said that most of the service providers in the counties are battling court cases lodged against them by their financiers and suppliers.

In addition, others are languishing in poverty exacerbated by the increased cost of living, increased mental health disease incidences and others dying as a result of the effects of colossal amounts of debt owed to them by county governments.

And now, the Senate recommends that all county governments pay verified pending bills amounting to less than Sh1 billion by the end of this financial year and those above Sh1 billion by the end of the financial year 2024/25.

The Senate also recommends that county governments prioritise payment of pending bills as a first charge on the County Revenue Fund failing to which the subsequent quotas budget releases will not be done.

“County governments shall only pay pending bills contained in their respective procurement plans, supplementary budgets for county governments are prepared in the third quarter to curb instances of arbitrary re-allocations out of the approved budget estimates,” said Kina.

Machakos county government has Sh3 billion in pending bills , Mandera Sh3 billion, Busia Sh2.2 billion, Embu Sh1.9 billion, Laikipia Sh1.7 billion and Wajir Sh1.6 billion respectively as at December 30, 2023.

“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. 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,” said Kina.

He went on: “Very soon, you will see buildings of national heritage being attached by people to sell them. What this law or the declaration of that Section of that Act of Civil Procedures as unconstitutional will do to this country, is something that we will not comprehend.”

According to Kina, the law under the county government’s regulations demands that pending Bill must be the first charge of a county, adding that Governors have now found a mysterious way of them ensuring that they pay their cronies, make their money or only benefit from outside.

Senate Majority Leader Aaron Cheruiyot (Kericho) while seconding the motion, said that nobody in their right senses still does business with county governments in the country.