Poor billionaires: The irony of ‘broke’ counties owed billions
A report by the Controller of Budget reveals that Kenyan counties are owed over Sh113 billion in revenue, despite struggling to pay their own debts and contractors. This financial backlog is hindering service delivery and raising questions about the effectiveness of revenue collection systems.
Why it matters
Highlights systemic fiscal mismanagement and liquidity issues within devolved government units that impact public service delivery.
Controller of Budget Margaret Nyakang'o / HANDOUT
Cash-strapped counties are owed over Sh113.29 billion, even as the devolved units struggle to pay suppliers, contractors and other creditors.
A new report by Controller of Budget Margaret Nyakang’o reveals the stark irony of counties that are unable to settle their debts but are themselves owed billions of shillings in unpaid revenue.
The County Governments Budget Implementation Review Report for the period ended June 30, 2026 shows that arrears stood at Sh111.62 billion at the beginning of the 2025-26 fiscal year but had risen to Sh113.29 billion by June 30, 2026.
Of the latest figure, Sh100.38 billion was ordinary own-source revenue owed to counties, Sh11.20 billion was owed to health facilities, while Sh1.70 billion was in grants.
The counties are also struggling with stalled projects, largely due to inadequate funding.
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