Hundreds of suppliers at Nairobi City Hall could finally get relief after the Nairobi County Assembly passed a motion seeking to compel the administration to settle verified pending bills.
The motion, sponsored by Woodley/Kenyatta Golf Course MCA Davidson Ngibuini (popularly known as DNG), gives Governor Johnson Sakaja 90 days to come up with a clear plan to settle all eligible trade payables as a first charge on the county budget in the subsequent financial year in which the liability is recognised.
The move comes as the latest records from the Controller of Budget show that Nairobi County has the highest pending bills among the 47 counties, with liabilities amounting to Sh81.79 billion. This accounts for 53 per cent of all county governments’ payables.
“I’m further disturbed that the delayed payables have adversely affected contractors, suppliers and service providers, many of whom are Small and Medium Enterprises (SMEs), leading to cash-flow constraints, business closures, loss of employment and irreversible financial distress in some cases,” Mr Ngibuini said.
While defending his motion, the MCA said the National Treasury’s push to eliminate outstanding bills had motivated him to seek the Assembly’s intervention and provide relief to suppliers.
He said some suppliers had been pushed into severe financial distress and struggled to meet basic needs, including medical expenses, as a result of prolonged delays in payment.
The motion directs the county government to undertake immediate and comprehensive verification and validation of all pending bills owed to contractors, suppliers and other service providers.
The headquarters of the Nairobi City County Government offices on City Hall Way.
Photo credit: Lucy Wanjiru | Nation Media Group
Where necessary, independent auditors should be engaged to establish the authenticity, accuracy and amounts claimed.
“This Assembly resolves that the County Government of Nairobi prioritises and treats the verified pending bills as a first charge against the county budget for the current and subsequent fiscal years and in strict adherence to the Public Finance Management Act, 2012 and its regulations.”
The Assembly also called for administrative controls, including disciplinary measures against officers found to have contributed to the irregular accumulation of pending bills or failed to comply with laid-down procurement processes and procedures.
The county executive has further been directed to submit quarterly reports to the Assembly, through the County Executive Committee Member for Finance and Economic Planning, detailing the status of pending bills, amounts settled and the outstanding balance.
Mr Ngibuini told the Assembly that Sh61.61 billion of Nairobi’s outstanding pending bills comprised debts that were more than three years old.
The motion was unanimously approved after MCAs raised concerns that the mounting pending bills were stalling development projects in their wards and leaving them to face the anger of residents.
Mutuini MCA Martin Mbugua Mwangi said he had experienced the effects of the pending bills after a contractor working in his ward had his bank account surcharged.
“This county government, which came with the promise of giving people hope and prosperity, has instead come to haunt people. Because of this, many of our residents are suffering because of unfinished projects. We have roads whose certificates have not been paid. This brings suffering and hopelessness,” Mr Mwangi said.
Githurai Ward MCA Deonysias Mwangi Waithira, who at one point threatened to resign over stalled projects attributed to unpaid bills, said the county was already in a crisis because of unfinished projects.
“The contractor undertaking the Wards Development Fund (WDF) project came and faced me and told me that he would not do the project because the county was not paying contractors. My WDF project of last year had to be readvertised because contractors had refused to bid for the contract,” Mr Waithira said.
Baba Dogo MCA Geophrey Odhiambo Majiwa said that following the approval of the Sh49 billion budget for the 2026/27 financial year, the county should move with speed to settle pending bills.
“This is a scenario where we require that even if it means taking a loan to pay the pending bills, because the procurements that are taking place now have a system where you cannot procure when you cannot pay. We need to have an arrangement where this money is paid before we get into the new system, which automatically pays before you even procure,” Mr Odhiambo said.
