Senator Aaron Cheruiyot Proposes Spending Caps and Sanctions to Tackle Rising County Pending Bills
Cheruiyot says most counties have tripled their pending bills since 2022, warning that failure to address the growing debt could disrupt service delivery and force suppliers to stop doing business with county governments.
Senate Majority Leader Aaron Cheruiyot. Photo/Courtesy
By Ruth Sang
Fresh reforms aimed at addressing the growing burden of pending bills in county governments could soon be introduced, as concerns mount over the financial strain unpaid debts are placing on businesses across the country.
The proposed measures include setting a ceiling on the amount of pending bills counties can accumulate and imposing sanctions on governors who exceed the prescribed limits.
Speaking on the matter, Senate Majority Leader Aaron Cheruiyot said pending bills owed by county governments to suppliers have risen sharply over the past three years, creating significant challenges for businesses that provide goods and services to devolved units.
“Pending bills in many counties have increased nearly threefold over the last three years, and this trend is becoming a serious concern,” Cheruiyot said.
According to the senator, the failure by counties to settle outstanding debts has left many businesses struggling financially, with some facing closure while others risk having their assets auctioned due to cash flow constraints.
He noted that nearly 90 per cent of county governments have significantly increased their pending bills since taking office in August 2022.
“Except for Nairobi County, which carries historical pending bills exceeding Sh90 billion, most counties have tripled their outstanding obligations over the last three years, a situation that is hurting businesses,” he stated.
Cheruiyot warned that if the issue is not addressed, suppliers may become reluctant to engage with county governments, potentially disrupting the delivery of essential goods and services.
“If this trend continues, businesses may stop supplying counties altogether, while court orders arising from unpaid debts could lead to the attachment of county accounts and disrupt service delivery,” he cautioned.
The Senate Majority Leader said the problem requires long-term policy interventions, including the introduction of spending controls and accountability measures to prevent counties from accumulating unsustainable debt.
He, however, acknowledged that implementing such reforms close to an election period could attract political controversy, making it more difficult to reach consensus on the proposed changes.
Cheruiyot further revealed that an analysis by the Parliamentary Budget Office showed that no county government has committed to a comprehensive plan for clearing its outstanding pending bills.
“The findings indicate that counties are not prioritising the settlement of pending bills, despite the huge burden these debts continue to place on businesses and local economies,” he said.
The proposed reforms are expected to form part of broader efforts to strengthen financial discipline within county governments and protect suppliers from the adverse effects of delayed payments.
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