By Reporter
Kilifi County Government has been declared technically insolvent over pending bills.
The full extent of the pending bills in the Kilifi County Executive has been laid bare before the County Public Accounts Committee, prompting Senator Moses Kajwang to declare the county technically insolvent.
A section of suppliers, under the aegis of their association, appeared before the Committee on Monday, September 21, 2026, during a public engagement at the Kilifi County Assembly in Malindi, where they painted a sorry picture of the situation.
They complained of poor record-keeping of procurement documents, unremitted statutory deductions and a lack of professionalism in the financial management of county affairs.
The suppliers also questioned why the county administration was prioritising payment of new debts at the expense of older ones, some dating back 10 years.
“We are suffering and if you don’t step in and help us, no one will,” said Mr Joshua Chai, the chair of the association.
One of the suppliers who appeared before the Committee is owed Sh17 million, while another is owed Sh16 million. They want the Senate to help audit the total stock of debt and determine the necessary intervention.
Chae said at least two task forces had been formed to verify and validate the debt, but nothing came out of the process as the findings were never published.
The pending bills in the county have hit a staggering Sh10.7 billion, the second highest nationally after Nairobi County.
According to the data presented to the Committee, the revenue-to-debt ratio stands at a worrying 70 per cent, higher than the national ratio. The county’s total revenue for the 2024/25 financial year was Sh14.3 billion, comprising Sh12.8 billion from the equitable share and Sh1.5 billion in own-source revenue.
Details of the county’s worsening debt situation emerged during a meeting between the Committee and suppliers and contractors of the County Executive at the Kilifi Assembly.
The suppliers used the meeting to vent their frustrations over the challenges they face before receiving payment, with some saying they had been pushed to the brink of bankruptcy and faced the auctioneer’s hammer.
Some claimed they are usually paid just part of what they are owed and wait for as long as a year for the balance.
It also emerged that while the county has used suppliers’ vouchers to make requisitions for withdrawals, the ultimate payments are often made to other suppliers, allegedly those willing to offer bribes or those who are politically connected.
For example, the Office of the Controller of Budget states that 612 transactions, with a total value of Sh3.2 billion, were voided in the Integrated Financial Management Information System (IFMIS). The Committee believes such practices have contributed to the huge pending bills in the county.
The Controller of Budget has said there is a need for the National Treasury to address systemic and legislative gaps identified in the management of IFMIS.
Senator Kajwang said it was time for the Senate to explore ways of developing a framework through which some of the bills could be paid at source where sufficient proof exists following verification.
He proposed that National Treasury CS John Mbadi must be involved as the worrying situation is forcing some of the suppliers out of business.
“You are removing these suppliers from business and with that you are killing the economy,” he said, as he challenged the County Assembly to exploit its immense powers to address the situation.
“Do a detailed inquiry and demand for answers and bring this cycle of poverty to an end,” he said.
Governor Gideon Mung’aro had been scheduled to appear before the Committee but was indisposed. The Committee directed the Deputy Governor to appear on Tuesday, September 22, 2026, where the matter will be discussed. The County Executive is expected to provide its side of the story on the state of pending bills and how the debt keeps mounting despite the clear provisions of the law.
Kajwang declares Kilifi County technically insolvent
By Reporter
Kilifi County Government has been declared technically insolvent over pending bills.
The full extent of the pending bills in the Kilifi County Executive has been laid bare before the County Public Accounts Committee, prompting Senator Moses Kajwang to declare the county technically insolvent.
A section of suppliers, under the aegis of their association, appeared before the Committee on Monday, September 21, 2026, during a public engagement at the Kilifi County Assembly in Malindi, where they painted a sorry picture of the situation.
They complained of poor record-keeping of procurement documents, unremitted statutory deductions and a lack of professionalism in the financial management of county affairs.
The suppliers also questioned why the county administration was prioritising payment of new debts at the expense of older ones, some dating back 10 years.
“We are suffering and if you don’t step in and help us, no one will,” said Mr Joshua Chai, the chair of the association.
One of the suppliers who appeared before the Committee is owed Sh17 million, while another is owed Sh16 million. They want the Senate to help audit the total stock of debt and determine the necessary intervention.
Chae said at least two task forces had been formed to verify and validate the debt, but nothing came out of the process as the findings were never published.
The pending bills in the county have hit a staggering Sh10.7 billion, the second highest nationally after Nairobi County.
According to the data presented to the Committee, the revenue-to-debt ratio stands at a worrying 70 per cent, higher than the national ratio. The county’s total revenue for the 2024/25 financial year was Sh14.3 billion, comprising Sh12.8 billion from the equitable share and Sh1.5 billion in own-source revenue.
Details of the county’s worsening debt situation emerged during a meeting between the Committee and suppliers and contractors of the County Executive at the Kilifi Assembly.
The suppliers used the meeting to vent their frustrations over the challenges they face before receiving payment, with some saying they had been pushed to the brink of bankruptcy and faced the auctioneer’s hammer.
Some claimed they are usually paid just part of what they are owed and wait for as long as a year for the balance.
It also emerged that while the county has used suppliers’ vouchers to make requisitions for withdrawals, the ultimate payments are often made to other suppliers, allegedly those willing to offer bribes or those who are politically connected.
For example, the Office of the Controller of Budget states that 612 transactions, with a total value of Sh3.2 billion, were voided in the Integrated Financial Management Information System (IFMIS). The Committee believes such practices have contributed to the huge pending bills in the county.
The Controller of Budget has said there is a need for the National Treasury to address systemic and legislative gaps identified in the management of IFMIS.
Senator Kajwang said it was time for the Senate to explore ways of developing a framework through which some of the bills could be paid at source where sufficient proof exists following verification.
He proposed that National Treasury CS John Mbadi must be involved as the worrying situation is forcing some of the suppliers out of business.
“You are removing these suppliers from business and with that you are killing the economy,” he said, as he challenged the County Assembly to exploit its immense powers to address the situation.
“Do a detailed inquiry and demand for answers and bring this cycle of poverty to an end,” he said.
Governor Gideon Mung’aro had been scheduled to appear before the Committee but was indisposed. The Committee directed the Deputy Governor to appear on Tuesday, September 22, 2026, where the matter will be discussed. The County Executive is expected to provide its side of the story on the state of pending bills and how the debt keeps mounting despite the clear provisions of the law.
