A recent report by Controller of Budget Margaret Nyakang’o has revealed that Kenyan county governments have accumulated a staggering Sh100.24 billion in unpaid salaries and statutory deductions. This significant liability has raised concerns about the financial security of county workers, particularly as they approach retirement. The report, part of the County Budget Implementation Review for the financial year 2025-26, highlights the extent of the problem.
The majority of the outstanding amount, Sh98.44 billion, is owed by county executives, while county assemblies account for Sh1.80 billion. This implies that workers in county hospitals, offices, and other public facilities may face uncertainty in their retirement, as deductions made from their pay remain in government accounts. Statutory deductions, which include money that should be remitted to pension firms, have been delayed, leaving workers exposed.
Nairobi county executive has the largest liability, with Sh85.78 billion in outstanding salary arrears and statutory deductions. A significant Sh49 billion of this amount has remained unpaid for more than three years, while another Sh13.53 billion is between two and three years old. The Nairobi county assembly also has a substantial liability, with Sh162.78 million in similar obligations.
Outside of Nairobi, several counties have significant liabilities. Machakos has the second-highest county executive liability at Sh1.95 billion, with Sh1.62 billion outstanding for less than one year and Sh325.51 million remaining unpaid for more than three years. Mombasa, Murang’a, Meru, and Kiambu also have substantial liabilities, ranging from Sh686.71 million to Sh1.33 billion.
Other counties with significant liabilities include Bungoma, Wajir, Taita Taveta, Kisii, and Nakuru. Bungoma’s liability includes Sh580.26 million unpaid for more than three years, while Wajir’s entire Sh662.28 million reported was also more than three years old. Some county assemblies, such as Busia, Migori, Kakamega, Uasin Gishu, and Wajir, also reported substantial liabilities.
The report highlights that more than Sh52.45 billion of the county executive obligations have been outstanding for over three years. This prolonged failure to meet payroll and statutory obligations raises concerns about the financial management of county governments and the welfare of workers. The situation may also affect counties’ ability to sustain essential services.
The findings of the report have significant implications for county workers, particularly those approaching retirement. The delayed statutory deductions may leave them without adequate pension benefits, affecting their financial security in retirement. The Controller of Budget’s report emphasizes the need for county governments to prioritize financial management and ensure timely payment of salaries and statutory deductions to protect workers’ welfare.
Key points
- County governments owe Sh100.24 billion in unpaid salaries and statutory deductions.
- Nairobi county executive has the largest liability, with Sh85.78 billion in outstanding salary arrears and statutory deductions.
- More than Sh52.45 billion of county executive obligations have been outstanding for over three years.
