The Kenya National Highways Authority (KeNHA), Kenya Rural Roads Authority (Kerra) and Kenya Electricity Transmission Company (Ketraco) top the list of worst parastatals to do business with as they amass billions of shillings in pending bills, a new report has revealed.
The report by the Controller of Budget (CoB) revealed that the three agencies alone owe suppliers and contractors at least Sh170 billion, accounting for almost a third of the entire national government's pending bills.
According to the report by Dr Margaret Nyakang’o, KeNHA tops the list of shame owing desperate contractors more than Sh82 billion followed by Kerra at Sh66 billion while Ketraco’s bill stands at Sh22.76 billion.
On the flip side, Kenya Roads Board, Kenya Ports Authority, Kenya National Qualifications Authority, Tharaka University, Masinde Muliro, Masinde Muliro University of Science and Technology, Kenya Institute of Mass Communication, Media Council of Kenya, Kenyatta University Teaching, Research and Referral Hospital are some of the few State corporations and State-owned enterprises with a clean bill of health as far as pending bills is concerned.
Analysis of the national government expenditure review report for the first quarter of the financial year ending June 30, 2025, indicated that the national government’s pending bills shot up to Sh528.36 billion as of September 30, 2024.
Worryingly for contractors and suppliers, the national government continues to spend less on clearing the debts with the figure rising by Sh12 billion in three months between July and September 2024.
Dr Nyakang’o said the debts comprise Sh410.69 billion (78 per cent), with Sh14.5 billion being accrued penalties, owed by State corporations, State-owned enterprises while ministries, department and agencies (MDAs) account for the remaining Sh117.67 billion. “The State Corporations’ pending bills include payments due to contractors/projects, suppliers, unremitted statutory and other deductions, and pension arrears for local authorities pension trust,” said Dr Nyakang’o.
“The highest percentage (Sh249.79 billion) was for contractors/projects at 61 per cent, followed by consumables and general supplies, at 10 per cent,” she added.
Individuals and companies that did business with the national government and have never been paid have lamented being hounded by creditors where some have had their assets auctioned due to defaulted repayments, with many plunging into depression and in extreme cases, some dying by suicide.
According to the report, State agencies in the Ministry of Roads and Transport are a nightmare to service providers with pending bills of Sh173.7 billion.
Other major culprits are in the Ministry of Energy and Petroleum (Sh68.12 billion), Education (Sh66.1 billion), Agriculture (Sh18 billion), ICT and Digital Economy (Sh13.47 billion) and Health (Sh10.84 billion).
Analysis of State agencies, State corporations and State-owned enterprises with pending bills of more than a billion shillings revealed that Rural Electrification and Renewable Energy Corporation owes its service providers Sh16.49 billion, while the National Oil Corporation of Kenya’s outstanding debt is Sh13.18 billion with Sh3.84 billion being accrued penalties.
Kenya Urban Roads Authority has pending bills of Sh13.6 billion, Kenya Railways Corporation Sh9.2 billion and Nairobi Metropolitan Area Transport Authority Sh1.59 billion.
In the Ministry of Health, Kenya Medical Supplies Authority is grappling with a debt of Sh4.3 billion, Kenyatta National Hospital Sh2.3 billion, defunct National Hospital Insurance Fund Sh2 billion and Moi Teaching and Referral Hospital Sh1.7 billion.
Postal Corporation of Kenya leads in the Ministry of ICT and Digital Economy with an outstanding bill of Sh6.83 billion and Kenya Broadcasting Corporation Sh6.43 billion.
In the Ministry of Education, Kenyatta University is struggling with a debt of Sh12.39 billion, University of Nairobi Sh11.9 billion, Technical University of Kenya Sh9 billion, Jomo Kenyatta University of Science and Technology Sh8.67 billion, Egerton University Sh7.88 billion and the troubled Moi University Sh6.2 billion.
Apart from the institutions of higher learning, the Kenya National Examinations Council is the other agency with more than Sh1 billion in pending bills at Sh1.3 billion, while the Kenya School of Government is reeling under the weight of Sh1.24 billion in debts.
In the Ministry of Agriculture and Livestock Development, Agricultural Development Corporation has pending bills of Sh1.15 billion with Sh55.5 million being accrued penalties; Chemelil Sugar Company Sh3.2 billion, Nzoia Sugar Company Sh4.12 billion and Muhoroni Sugar Company Limited Sh1.24 billion.
National Cereals and Produce Board owed its suppliers Sh4.27 billion, Pyrethrum Processing Company of Kenya Limited Sh3 billion with Sh777.7 million being accrued penalties, and Kenya Seed Company Sh1.37 billion.
Kenya Forest Service has Sh1.56 billion debt in the Ministry of Environment and Forestry while in the Ministry of Tourism, it is only the Kenya Wildlife Service which has a pending bill of more than a billion shillings at Sh1.34 billion.
East African Portland Cement Company has a debt of Sh12.4 billion in the Ministry of Trade, Investments and Industry.
In the Water ministry, Tanathi Water Works Development Agency has a pending bill of Sh5.89 billion, Athi Water Works Development Agency Sh1.37 billion while other agencies have outstanding debts of below a billion shillings.
Lake Basin Development Authority owes its service providers and contractors Sh4.59 billion in the Ministry of East African Community.
For MDAs, Sh117.67 billion debts comprise Sh85.7 billion owed to goods and services suppliers and Sh31.9 billion for contractors with the Ministry of Defence having pending bills of Sh17.38 billion while the National Treasury’s debt stands at Sh3.19 billion.
The State Department for Transport leads other departments with a debt of Sh6.12 billion followed by Correctional Services Sh4.28 billion, State department for Asal and Regional development Sh3.7 billion, and State department for Agriculture Sh3.5 billion.
Others are the State department for Devolution Sh2.6 billion, Internal Security and National Administration Sh2.25 billion, Wildlife Sh2.9 billion, Immigration and Citizen Services Sh1.76 billion, Office of the deputy president Sh1.35 billion, and State department for Broadcasting and Telecommunications Sh1.12 billion.
For agencies, the National Youth Service has the biggest pending bills stock standing at Sh14.57 billion followed by the defunct Nairobi Metropolitan Service’s Sh13.37 billion, the National Police Service (Sh6 billion), and the Teachers Service Commission (Sh3.38 billion).
Others are the Independent Electoral and Boundaries Commission Sh3.9 billion, National Land Commission Sh1.55 billion, and the Parliamentary Joint Services Sh1.37 billion.
