County governments reported outstanding pending bills amounting to Sh168.62 billion in the first quarter of the 2024/25 financial year, comprising Sh129.15 billion for recurrent activities and Sh34.47 billion for development activities.
According to a report released by Controller of Budget Margaret Nyakangó, counties with significant pending bills include Nairobi at Sh121.06 billion, Garissa at Sh6.07 billion, Kiambu at Sh5.90 billion, Turkana at Sh4.78 billion, Machakos at Sh4.42 billion, and Mombasa at Sh3.93 billion.
Dr Nyakangó highlighted several challenges hindering effective budget execution during the period under review. These included delays in submitting County Appropriation Acts, Budget Books, and Governors’ Warrants for the 2024/25 financial year to the Controller of Budget. Additionally, she noted a high level of pending bills, low development budget absorption rates, and the failure of fund administrators to submit quarterly financial statements as major shortcomings in counties’ fiscal management.
“Delays by Parliament in enacting the County Allocation of Revenue Bill 2024, delayed disbursement of the equitable share of revenue by the National Treasury, underperformance in own-source revenue collection, and issues with the Facility Improvement Fund are among the challenges contributing to delayed payment of pending bills,” said Nyakangó.
To address these issues, she urged county treasuries to ensure timely submission of County Appropriation Acts, Governors’ Warrants, and Budget Books at the start of each financial year. Additionally, she called on Parliament to expedite the enactment of the County Allocation of Revenue Bill 2024 and the County Governments Additional Allocations Bill 2024.
Nyakangó also advised the National Treasury to ensure prompt disbursement of equitable revenue and encouraged county governments to strengthen revenue collection mechanisms through improved administration, public awareness campaigns, and enhanced monitoring of revenue sources.
The report noted that counties collectively generated Sh12.68 billion from their own revenue sources, representing 15 per cent of the annual local revenue target of Sh85.22 billion. This marked a 24 per cent increase compared to the same period in the 2023/24 financial year when counties raised Sh10.21 billion.
Several counties achieved commendable proportions of local revenue collection relative to their annual targets, with Tana River at 81 per cent, Narok at 60 per cent, Samburu at 36 per cent, Garissa at 27 per cent, and Elgeyo Marakwet at 26 per cent. Conversely, counties with the lowest performance included Marsabit, Kajiado, and Nyamira, each attaining 9 per cent, while Bungoma, Machakos, and Kericho achieved 8 per cent. Kisumu County reached 7 per cent, and Bomet County reported only 6 per cent.
During the period, the Controller of Budget authorised the withdrawal of Sh55.11 billion from County Revenue Fund accounts to County Operational Accounts. Of this amount, Sh47.83 billion (87 per cent) was allocated to recurrent activities, while Sh7.29 billion (13 per cent) was designated for development activities.
