In the latest findings by the Controller of Budget regarding the budget implementation review report for the first half of the fiscal year 2023/24, Kiambu County emerges with a significant burden of pending bills, further exacerbating its financial challenges.
According to Regulation 41 (2) of the Public Finance Management (County Governments) 2015, debt service payments are prioritized to prevent defaulting on debt obligations. Additionally, Regulation 55(2) b requires that finalized and signed contracts are budgeted before new projects are considered.
During the period under review, Kiambu County reported outstanding pending bills amounting to a staggering Kshs. 5.71 billion. This represents a substantial portion of the overall pending bills across various counties, with Nairobi City County leading at Kshs. 107.04 billion.
The Controller of Budget’s report highlights the urgency for County Governments to settle these eligible pending bills as a priority, in accordance with the law.
Despite receiving Kshs. 4.04 billion as the equitable share of revenue raised nationally and having a cash balance of Kshs. 2.55 billion from the previous fiscal year, Kiambu County faced a challenging revenue performance. The county managed to raise Kshs. 1.66 billion as own-source revenue (OSR), which included funds from various sources such as the Fiscal Infrastructure Fund (FIF) and ordinary OSR.
With a total budget implementation fund of Kshs. 8.24 billion available during the period, the strain of high pending bills presents a significant hurdle for Kiambu County’s financial stability and service delivery.
As Kiambu grapples with this financial dilemma, stakeholders and residents await decisive action from county authorities to address these challenges and ensure prudent fiscal management for the well-being of the region.
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