Defence Ministry and NMS among top defaulters in Sh117 billion pending bills - report
By Maureen Kinyanjui |
Other key defaulters include the National Police Service (NPS), the State Department of Transport, and the Medical Services sector, which collectively owe nearly Sh18 billion.
The Ministry of Defence has emerged as the leading contributor to Kenya’s growing backlog of unpaid bills, with an outstanding debt of Sh17 billion, according to a new report by the Controller of Budget.
The report reveals that the total pending bills for state ministries, departments, and agencies amounted to Sh117 billion as of September 30, 2024.
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Recurrent expenditure accounts for the majority of these unpaid bills, totalling Sh85.7 billion, while development-related debts amount to Sh31.9 billion.
The Ministry of Defence owes Sh16.7 billion in recurrent bills and Sh665 million in development-related payments. These figures underline persistent financial management challenges within the government, particularly in defence operations, which receive substantial budget allocations.
The defunct Nairobi Metropolitan Service (NMS) follows closely with Sh13.3 billion in unpaid bills, while the National Youth Service (NYS) ranks third, owing Sh14.5 billion in recurrent bills. The State Department of Agriculture has also accumulated a significant debt of Sh9.5 billion.
Other key defaulters include the National Police Service (NPS), the State Department of Transport, and the Medical Services sector, which collectively owe nearly Sh18 billion.
While the total pending bills have decreased from Sh136.5 billion in June 2024 to Sh117 billion, marking some progress in debt reduction efforts, they still represent 26 per cent of the national government’s total pending bills, which stand at Sh516.2 billion.
The Controller of Budget’s report also highlights that during the review period (July to September 2024), the government’s total expenditure was Sh823 billion, with Sh106 billion allocated to development and Sh717 billion to recurrent expenses.
The State Department for Roads led development spending, utilising Sh24.7 billion. Other major spenders included the State Department for Economic Planning (Sh14.1 billion) and the State Department of Irrigation (Sh4.8 billion). Additional key expenditures were Crop Development (Sh4.5 billion), Water and Sanitation (Sh4.3 billion), and Medical Services (Sh3.9 billion).
On recurrent expenditure, the Teachers’ Service Commission (TSC) topped the list, spending Sh86 billion, followed by the Ministry of Defence at Sh40.7 billion. Other significant recurrent spenders included the Ministry of Higher Education (Sh35.5 billion), the National Police Service (Sh29 billion), and the State Department of Basic Education (Sh26 billion).
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