County government workers across the country are grappling with a financial nightmare that has resulted in months of delayed salaries.
The cause? A cash crunch triggered by the National Treasury's late disbursement of monthly dues to counties.
Frustration is now mounting as workers, long promised a fair share, feel neglected -- especially after national government employees received a long-awaited pay hike while county workers were left to fend for themselves.
The Senate's stalling of the Counties Allocation of Revenue (Amendment) Bill, 2024 has left counties such as Kakamega and Kisumu with no choice but to borrow from financial institutions to meet payroll obligations.
Parliament is expected to consider amendments to the County Allocation of Revenue Act (CARA), 2024 following the amendment of the Division of Revenue Act, which shares national revenue between the two tiers of government.
Members of the bicameral House of Representatives are now in mediation to come up with a version accepted by both parties after the Senate rejected the National Assembly's amendments.
The bone of contention is the proposed reduction of Sh20 billion from the Sh400 billion allocated to counties as equitable revenue sharing for the fiscal year ending June 30, 2025.
The delay in the payment of salaries has forced some counties to resort to overdraft facilities at exorbitant interest rates.
In Bungoma County, the situation is serious, with workers only receiving salaries up to July. The delay has placed an immense financial burden on the workers, pushing many to the brink.
“I am a very discouraged officer this evening. I’ve visited three different hospitals seeking treatment, but with no success. To make matters worse, I have no money to pay for my treatment due to the non-payment of my salary, and no information on when, or if, we will ever be paid. Only God can intervene to save us from this unbearable situation—no food, no fare, no treatment, no salary,” said one officer from Bungoma county.
Counties in the South Rift, including Nakuru, Laikipia, Narok, Nyandarua, and Kericho, are turning to bank overdrafts to cover salaries and critical programmes after facing financial constraints from delayed revenue disbursements.
"We've learned lessons from Treasury’s delays. It’s now prudent to strike survival deals with banks in advance," a senior finance official in Nakuru told the Nation. These deals include overdrafts without immediate interest charges.
In Laikipia, civil servants are yet to receive their September salaries. A medic from Nyahururu Hospital said that "some casual workers haven’t been paid for 3 to 6 months. How do parents meet children’s needs with no salary?"
In Nakuru, an October 28 letter from County Secretary Samwel Mwaura confirmed the salary delays, citing problems with the integration of the Social Health Insurance Fund into the payroll system.
“Any inconvenience caused is highly regretted," the letter read.
An employee, who spoke on condition of anonymity, added, "We were told the delay was due to issues with SHA deductions. We're just waiting.”
In the Coast region, Mombasa is the only county that has met its payroll obligations on time.
Tana River County Finance Executive Brenda Mokaya said, "We informed employees in advance to prevent unrest. We expect the disbursement to come through soon."
In Taita Taveta and Lamu, health workers and other county employees are also feeling the pinch, with ongoing delays tied to the implementation of SHIF deductions.
"We've not yet received our October salaries and every time we ask, we're told to be patient as they are in the process of implementing and effecting the SHIF deductions in our latest payslips," said a junior doctor who spoke on condition of anonymity.
An internal memo issued by the Lamu County Government on October 29, and seen by the Nation , alerted county staff about the delay in their October salaries. The memo was signed by Lamu County Secretary Ali Abbas.
"This is to address a critical concern regarding the processing of the October 2024 salaries. Please note that the county is required to implement the SHIF deductions at a rate of 2.75 percent of the total gross salary. This deduction will have a significant impact on county government employees. Furthermore, due to the late closure of our payroll, this is to inform you that the October salaries will delay," read part of the memo.
Dr Niko Gichana, the Coast region chairperson of the Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU), said the delayed equitable share for August, September, and October has put county workers, especially medical personnel, in a challenging situation.
“The Exchequer hasn’t disbursed August, September, and October’s equitable share, leaving counties unable to meet basic obligations,” he said.
The crisis has sparked protests, with unions demanding action.
Richard Amdany, the Uasin Gishu Chapter chairperson of the Kenya County Government Workers Union (KCGWU), said that workers have gone without salaries for the last month and petitioned the county to speed up the process of releasing funds to cushion them from hardship.
“The worst challenge facing the workers is lack of medical attention due to challenges facing the Social Health Authority programme. They have no money to pay for the treatment,” said Mr Amdany, noting that some of them risk having their property auctioned to repay shylock loans.
The pain is also being felt in Bomet, where workers were paid more than a week late, and in Nakuru, where the integration of the Social Health Insurance Fund (SHA) into the county payroll system has caused further setbacks. Workers there were informed of the delay in a letter from the county secretary on October 28.
The impact of the payroll delays is being felt in vital sectors, particularly education and health. Teachers, many of whom rely on their salaries for basic needs, have seen their financial stability disrupted, making it harder for them to provide for their families. Health workers in counties such as Kisumu and Nakuru report challenges in maintaining hospital operations due to low staff morale and inadequate remuneration for their services.
Reported by Mercy Simiyu, Wachira Mwangi, Lucy Mkanyika, Kalume Kazungu, Stephen Oduor, Wachira Mwangi, Stephen Oduor, Mwangi Ndirangu, Vitalis Kimutai, Mercy Koskei, and Waikwa Maina.
