Deputy President Kithure Kindiki has urged county governments to speed up the settlement of pending bills, warning that unpaid debts are disrupting public services and putting businesses that rely on government contracts under strain.
Speaking on Monday at the 30th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) at his official residence in Karen, Nairobi, Dr Kindiki said counties had made progress in addressing their outstanding obligations but needed to maintain the effort.
“The accumulation of pending bills undermines service delivery, damages the credibility of government and adversely affects businesses that depend on government contracts,” Kindiki said.
He said county governments had approved action plans for dealing with their pending bills. By March 31, 2026, 35 county executives and county assemblies had submitted details of their outstanding bills, while 29 had filed action plans for settling them.
The Controller of Budget had also approved Exchequer requests worth Sh34.46 billion to address pending bills, according to Kindiki.
He praised counties that had begun verifying, prioritising and paying legitimate claims, but said more work was needed.
“However, this remains an area requiring sustained attention,” he said.
The issue of pending bills has become a recurring challenge for county governments, with delayed payments affecting suppliers and contractors involved in delivering public services. Kindiki called for outstanding claims to be properly verified before being prioritised for payment.
Counties to receive Sh428 billion
The meeting also focused on funding for devolved governments.
Kindiki said Parliament had approved Sh428 billion as the equitable share for counties in the 2026/27 financial year. He said the National Treasury had also released all equitable-share funds due to counties by the end of the previous financial year, despite pressure on public finances.
He described the disbursements as evidence of the national government’s commitment to devolution.
But he said the success of intergovernmental cooperation should ultimately be judged by its effect on citizens, rather than by agreements reached between officials.
He urged IBEC members to focus on fiscal responsibility, predictable funding and the effective use of public resources.
The Deputy President also highlighted progress in areas including drought response, healthcare, land titling for affordable housing and the County Aggregation and Industrial Parks program.
On the industrial parks, he said their performance should be assessed by the businesses they attract, jobs created, products processed and markets reached, rather than simply by the construction of physical facilities.
Kindiki called for continued cooperation between national and county governments, saying stronger coordination was necessary to improve public financing and service delivery.
He also urged IBEC members to approach their discussions openly and focus on practical solutions as they reviewed the implementation of previous agreements.
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