Kiambu County, despite being one of Kenya’s wealthier counties and receiving a significant share of national funds, has been ranked the worst in the country when it comes to settling outstanding bills owed to suppliers. This concerning revelation comes from a recent report by the Controller of Budget (CoB).
The report, released in April 2023, reveals that Kiambu has only paid a meager 4% of its verified pending bills, amounting to Sh143.3 million out of a total of Sh3.36 billion. This stands in stark contrast to the national average, with counties across the country having settled nearly half (49.78%) of their eligible pending bills by the same date, totaling Sh23.96 billion.
This lack of payment has had severe consequences for individuals and businesses that provided goods and services to Kiambu County. Many suppliers are reported to be struggling financially, facing debt collection, and even depression. In some extreme cases, non-payment has even resulted in suicides.
The government, however, has cited the need for meticulous verification of pending bills to prevent fraudulent claims, including those for nonexistent work or inflated invoices. Despite this explanation, the slow pace of payments continues to adversely affect suppliers and exacerbate their financial woes.
This concerning revelation is compounded by the fact that Kiambu County receives substantial funding from the national government annually, primarily through the equitable share of revenue. Despite this financial support, the county has struggled to fulfill its financial obligations to suppliers, raising questions about its fiscal management practices.
As the current financial year draws to a close, with Kiambu County allocated Sh12.22 billion, stakeholders are calling for urgent measures to address the pending bills crisis. Timely payment to suppliers is not only essential for their financial stability but also for fostering a conducive business environment and upholding ethical governance standards.
While the government has cited the need for thorough verification to prevent fraudulent claims, the significant delay in settling legitimate bills raises concerns about Kiambu County’s financial responsibility and its commitment to supporting local businesses.
