Governance experts warn that such borrowing exposes county governments to heavy fines and mounting interest.
Some of the affected counties have signed MoUs with banks to manage salary payments during cash shortages.
Several governors have resorted to negotiating costly loans from commercial banks to cover recurrent expenditures, including salaries and essential services, as the National Treasury delays monthly disbursements.
The latest budget implementation review report for the first quarter of the 2024/2025 financial year by Controller of Budget (CoB) Margaret Nyakang’o has revealed that eight counties borrowed over Sh2 billion from commercial banks to sustain operations and pay salaries.
