A new report by the Office of the Controller of Budget reveals that Kenyan counties owe suppliers a staggering Sh176.80 billion in pending bills as of June 30th, 2025. The report, presented by Controller of Budget Margaret Nyakang'o, highlights severe non-compliance with payment plans and financial regulations by county governments.

• Counties recorded a cumulative total of Sh176.80 billion in pending bills by June 30th, 2025.
• The Controller of Budget, Margaret Nyakang'o, noted that a significant portion of these bills, Sh85.42 billion, had been pending for over three years.
• County governments also spent Sh220.64 billion on employee compensation in the 2024/2025 financial year, representing 47 percent of their total expenditure and exceeding the recommended 35 percent limit.
• Only eight out of 47 counties adhered to the 35 percent ceiling for employee compensation.
• The report also shows that Sh10.7 billion in employee compensation was processed manually outside the government payroll system.