{
  "id": 14422076,
  "title": "Nyakang’o reveals how counties’ borrowing spree to pay salaries has been stopped",
  "url": "https://urgent.news/2026/10/14/nyakango-reveals-how-counties-borrowing-spree-to-pay-salaries-has",
  "topic": "world",
  "section": "World",
  "published": "2026-10-14T10:11:35.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/business/nyakango-reveals-how-counties-borrowing-spree-to-pay-salaries-has-been-stopped"
  },
  "original_language": "en",
  "account": "Controller of Budget Margaret Nyakang’o announced on Friday, October 9, 2026, that counties should no longer borrow money to pay salaries due to the integration of payroll systems with the Integrated Financial Management Information System (IFMIS). The reforms, combined with more frequent Treasury disbursements, have put an end to counties seeking loans to cover their monthly wage bills. Nyakang’o highlighted that the integration of the human resource system with IFMIS has strengthened controls over county payrolls, and instructed counties not to borrow money for salaries. The timely release of funds from the National Treasury is crucial to ensure counties pay employees their full salaries without diverting funds meant for wages. These payroll reforms, operational since July 1, 2026, link payroll processing to IFMIS, processing salaries and statutory deductions together. This prevents counties from withholding statutory deductions to finance other expenses. However, the reforms do not erase liabilities accumulated before their implementation. As of June 30, 2026, county governments reported Ksh100.24 billion in outstanding salary arrears and statutory deduction liabilities, responsibilities that remain with the counties despite the new payroll arrangements.",
  "summary": "Controller of Budget Margaret Nyakang’o has said county governments should no longer borrow money to pay salaries following the integration of payroll systems with the Integrated Financial Management Information System (IFMIS). Nyakang’o said the reforms, coupled with more timely disbursement of funds by the National Treasury, had addressed the practice of counties seeking loans to […]",
  "key_points": [
    "Controller of Budget Margaret Nyakang’o announced counties must stop borrowing to pay salaries.",
    "Integration of payroll systems with IFMIS and more frequent Treasury disbursements ended borrowing.",
    "Outstanding salary arrears of Ksh100.24 billion remain with counties post-reforms."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}