Unpaid govt bills rise to Sh465.87bn amid mounting debt ressures
Kenya’s pending bills stood at Sh465.87 billion by March 2026, with the Controller of Budget warning that unpaid obligations are constraining service delivery, delaying projects, and exposing government to additional costs...
✨ Key Highlights
Kenyan government agencies have accumulated a staggering Sh465.87 billion in unpaid bills as of March 31, 2026, highlighting severe liquidity issues amidst a surging public debt of Sh12.82 trillion.
- The outstanding bills consist of Sh271.16 billion for recurrent expenses and Sh194.71 billion for development projects.
- The Controller of Budget (CoB) released the report, which also notes significant delays in procurement processes attributed to challenges with the Electronic Government Procurement (e-GP) system.
- Kenya's public debt surged by 9 percent in the first nine months of the 2025/26 financial year, with domestic debt increasing by 13 percent.
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CS Mbadi Defends Ksh4.8 Trillion Budget Amid Economic Pressures - June 2026
Treasury Cabinet Secretary John Mbadi defended the challenging 2026/27 budget of Ksh4.8 trillion, citing significant economic pressures including external shocks, underperformance in revenue collection, and rising inflation. He stated there would be no surprises as most revenue-raising proposals had already undergone public participation. CS Mbadi announced that ongoing KRA reforms are expected to boost tax collections without higher tax rates. He explained the government plans to address a Sh1.1 trillion deficit through revenue enhancement and expenditure rationalization. However, government spending outside approved budgets has jumped nearly sixfold to Sh276.99 billion in the first nine months of 2025/26, raising concerns about fiscal discipline. Kenyan government agencies have accumulated Sh465.87 billion in unpaid bills as of March 2026, amidst surging public debt of Sh12.82 trillion. Meanwhile, Peter Mbae is urging MPs to amend or reject the budget, blaming excessive government spending for increased borrowing.
