Debt: Senators expose how counties are driving contractors into bankruptcy

Senators, particularly, flagged Tharaka Nithi and Garissa counties, where long-overdue bills remain unsettled, despite repeated calls for accountability.
Imagine delivering goods to a county, taking a bank loan to keep your business afloat, then waiting over 10 years for payment.
That is the painful reality thousands of small business owners face, as senators expose how county governments have failed to settle debts, pushing contractors into financial ruin and leaving many at the mercy of auctioneers.
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The shocking revelations emerged during the Senate County Public Accounts Committee hearings led by Homa Bay Senator Moses Kajwang’, where governors were grilled over delayed payments, some dating back to the 2014–15 financial year.
The committee particularly flagged Tharaka Nithi and Garissa counties, where long-overdue bills remain unsettled, despite repeated calls for accountability.
Senators expressed outrage at how small-scale contractors, some of whom are owed as little as Sh150,000, continue to chase payments nearly 10 years later, even as well-connected firms with multimillion-shilling tenders are paid without delay.
“It is unacceptable that county governments are rewarding big firms while small traders, who often take loans just to deliver on contracts, are left to suffer,” a senator said.
One of the most troubling cases is that of Sophia Enterprises, which supplied food to Chuka Hospital in 2014–15 but has yet to be paid.
“What could be the reason Sophia Enterprises, which supplied food in 2014–15, would remain unpaid to date?” Kajwang’ asked.
“How can one person have five invoices for food supplies from 2014, and you fail to pay even one?” he posed further.
Governor Muthomi Njuki, who was not in office at the time the contract was issued, claimed the county was still verifying documents.
“We have documents for the supply, but we have yet to validate that the goods were delivered,” he said. However, senators were not convinced. “You have the LSO number, the invoice and the delivery note. What more do you need to confirm payment?” Kajwang’ pressed.
It also emerged that the county had never contacted the supplier to request further information.
“This is unjust. This is unfair. This is unacceptable,” Kajwang’ declared. “For 10 years, you’re still verifying whether someone delivered meat to a hospital?” Tharaka Nithi’s pending bills now total Sh400 million.
In Garissa, a supplier who delivered goods in 2014 is still owed Sh1.6 million and has only received Sh500,000, despite the county continuing to fund renovations of national government houses. “Let us prioritise. If you’re still holding onto bills from 2013–14, and you were governor at that time, then you’re fake,” Kajwang’ told Governor Nadhif Jama.
The senator warned that the financial burden has become a matter of life and death. “This is as bad as death. Some of the affected contractors have ended up taking their own lives,” he said. Garissa’s pending bills now exceed Sh2.4 billion.
A report by the Controller of Budget shows that counties collectively owe Sh172.51 billion in pending bills as of March 31. The Senate is now demanding a full audit of historical debts and tougher enforcement against counties that continue to delay verified payments.
With pressure mounting, and thousands of lives and businesses on the line, senators say the time for excuses is over.
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