Senators push for stronger budget oversight to tackle counties' debt crisis
By Maureen Kinyanjui |
The request follows the latest report by the CoB, which highlights the alarming scale of unpaid bills within county governments.
Kenyan Senators are calling for greater authority to be granted to the Controller of Budget (CoB), Margaret Nyakang'o, in a bid to address the growing issue of pending bills across counties.
The lawmakers are seeking a judicial review in the Supreme Court to enhance Nyakang'o's oversight of county budgets and ensure more effective management of the mounting debt, which currently exceeds Sh168.6 billion.
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The request follows the latest report by the CoB, which highlights the alarming scale of unpaid bills within county governments.
According to the report, for the first quarter of this financial year, counties owed Sh129.15 billion in outstanding recurrent bills and an additional Sh34.47 billion in development debts.
A large portion of the debt is concentrated in just six counties, with Nairobi City alone accounting for a staggering Sh121 billion.
Over the same period, the pending bills of 20 other counties increased by Sh15 billion. Senators are concerned that unless urgent steps are taken, the situation will continue to worsen and may eventually undermine the financial viability of the counties.
Migori Senator Eddy Oketch was among those advocating for stronger powers for the CoB.
"As a Senate, we should go to the Supreme Court to get a judicial review to make sure that we have the Controller of Budget indeed controlling the budgets of our counties," he said.
Oketch warned that unless action is taken, pending bills could become an insurmountable issue, threatening the operational viability of counties across the country.
The CoB's mandate includes ensuring that counties comply with budgetary regulations, particularly the Public Finance Management Act, which requires that debt servicing be treated as a first charge on the County Revenue Fund.
The Act also mandates that any finalised contracts must be included in a county's budget before new projects are undertaken.
However, Nyakang'o has repeatedly criticized counties for failing to adhere to the payment plans they submit to her office.
She pointed out that many counties do not prioritise the settlement of pending bills, which exacerbates the debt crisis.
Narok Senator Ledama Ole Kina emphasized the urgency of the matter, noting the severe consequences of unpaid debts.
"If you go to counties, you will realise that the amount of pending bills is huge. It is something that will bring this country to a halt," he said.
Ole Kina also highlighted the tragic personal toll the debt crisis has had, with reports of individuals taking extreme measures due to financial stress.
"People have killed themselves. Let us make it a priority in the next coming session that we follow up on the implementation," he added.
To address the crisis, the Senate Minority Whip has called for the establishment of an implementation committee to track and enforce directives aimed at clearing the backlog of unpaid bills.
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