Kilifi County declared technically insolvent over mounting pending bills
Senate Public Accounts Committee says Kilifi owes suppliers Ksh10 billion as county revenue collection remains below its estimated potential. The post Kilifi County declared technically insolvent over mounting pending bills appeared first on KBC Digital .
Kilifi County has been declared technically insolvent by the Senate County Public Accounts Committee due to mounting pending bills and revenue leakages impacting service delivery. The committee chairperson, Moses Kajwang, revealed that the county owes around Ksh10 billion in outstanding bills, with the county receiving about Ksh12.8 billion in revenue annually.
This leaves only Ksh3.6 billion for operational expenses, which is insufficient to cover obligations and pay workers. The committee also discovered that the county's debt-to-revenue ratio has increased to over 65%, exceeding the recommended 20% threshold. Additionally, Kilifi has the potential to collect between Ksh4 billion and Ksh5 billion in revenue, but presently generates only about Ksh1.4 billion.
The concerns will be addressed with Governor Gideon Mung'aro, who was absent due to illness, and Deputy Governor Flora Chibule, who is set to appear before the committee on Thursday. The outstanding debts have placed the county at legal risk, potentially obliging it to pay extra fees to suppliers for failing to fulfill contractual obligations.
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