Nairobi’s mounting pending bills signal fiscal crisis, Senate index warns
NAIROBI, Kenya, Aug 7 – Nairobi City County has been ranked the country’s worst-performing county in managing pending bills, with the Parliamentary Budget Office (PBO) warning that its growing debt…
Nairobi City County has been identified as the worst-performing county in managing pending bills, according to a report by the Parliamentary Budget Office (PBO). The County Fiscal Performance Measurement Index (CFPMI) assessed all 47 counties based on seven key indicators, including budget implementation, development expenditure, own-source revenue, wage expenditure, pending obligations, county assembly expenditure ceilings, and audit outcomes.
Nairobi consistently ranks at the bottom in managing pending obligations, receiving an "E" grade for both the 2023/24 and 2024/25 financial years. The report highlights that Nairobi's pending bills exceed three times its total annual revenue, making it the most severe case of fiscal insolvency among all counties. The backlog of unpaid bills could disrupt service delivery, discourage future business contracts, and erode public trust in the government.
Nairobi accounts for over 40% of all pending bills owed by county governments. Despite a slight improvement in the overall performance score to 0.000 in 2024/25, the county remained stagnant with an "E" grade. The Controller of Budget's annual report for the 2024/25 financial year revealed that total county pending bills decreased to Sh176.8 billion from Sh182.46 billion in the previous year. Nairobi had the highest stock of pending bills at Sh86.77 billion, which is nearly half of all outstanding county arrears.
The PBO emphasizes the need for stronger commitment controls, verification of pending bills, and prioritization of payments to address the persistent fiscal challenges faced by counties. While some progress has been made in public financial management, counties nationwide continue to grapple with pending obligations, with the average score for managing pending bills remaining at around 0.34 in 2024/25.
The majority of counties are classified as having lower performance grades, underscoring the widespread fiscal weaknesses across the country.
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