Senate slams county assemblies over debts, unlawful spending
Many contractors are now embroiled in lawsuits, while others face financial ruin, mental health challenges, or even death due to unpaid debts.
County assemblies are facing growing criticism over poor financial management, mounting debts, and recruitment practices favouring dominant local communities.
A report by the Senate County Public Accounts Committee has exposed systemic issues that threaten both service delivery and public trust in devolved units.
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The committee’s analysis of audit reports for the financial year ending June 30, 2024, revealed that some assemblies were directing funds to organisations with no legal mandate, making such payments irregular and impossible to verify.
The County Assemblies Forum (CAF) and the Society of Clerks-at-the-Table (SOCATT) were specifically mentioned.
“The committee noted that county assemblies made payments to SOCATT and CAF, which were irregular and unlawful,” the report states.
Senators recommended an immediate halt to these contributions and proposed surcharging any accounting officers authorising further payments.
The move is expected to limit the influence of lobbying networks often used by MCAs and clerks to advance private agendas.
The report also highlighted that the growing pending bills in counties is suffocating businesses and slowing development.
“The accumulated pending bills in counties have significantly affected service providers, leading to the closure of businesses, stalled projects, poor service delivery and slowed economic growth,” the report notes.
Many contractors are now embroiled in lawsuits, while others face financial ruin, mental health challenges, or even death due to unpaid debts.
To tackle this, the committee recommended that counties settle verified pending bills below Sh1 billion by the end of this financial year, and those above Sh1 billion by the next.
Each county is also expected to submit a clear repayment plan to the Controller of Budget, treating pending bills as the priority in the County Revenue Fund.
Ethnic imbalance in staffing was another concern raised, with many county assembly employees drawn largely from the dominant local community.
“The county assembly should work progressively towards attaining the requirements of the provisions of Section 65(1)(e) of the County Government Act on ethnic inclusivity,” the report states.
The review also found instances of staff receiving less than a third of their basic salary, contrary to Section 19(3) of the Employment Act 2007.
The committee urged that payroll systems be adjusted to prevent unauthorised commitments and highlighted the need to track county assembly assets through proper fixed asset registers.
“The committee further recommends the sanction and surcharge of accounting officers who fail to recover outstanding imprests in line with Regulation 93(7) of the PFM (County Government) Regulations, 2015,” the report adds.
By enforcing these measures, the committee hopes to strengthen accountability, ensure timely payment of debts, and promote fair staffing practices in county assemblies.
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