Pending bills in Nairobi rise by Sh40 billion in last year of NMS

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Counties

Pending bills in Nairobi rise by Sh40 billion in last year of NMS


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Mohammed Badi, Director General of Nairobi Metropolitan Services (NMS). PICTURES | FRANCIS NDERITU | NMG

Nairobi County racked up an additional Sh40 billion in outstanding bills during the last financial year while under the management of the Nairobi Metropolitan Services, causing cash flow problems for its suppliers and contractors.

Latest data from the Controller of Budget (CoB) shows Nairobi’s pending bills jumped to Sh99.06 billion for the year ended June 2022, from Sh54.32 billion a year earlier, increasing the cash flow of businesses and entrepreneurs who have done business with the county.

Nairobi’s share of the bills represents 70 percent of the Sh153.02 billion the decentralized units owed to businesses and entrepreneurs at the end of the year through June, plunging them into cash flow problems.

Counties owed businesses and contractors Sh96 billion at the end of the 2020/21 financial year and the rise of Sh57 billion in 12 months, highlights the continued disregard of devolved units to pay for goods and services provided .

“The county (Nairobi) has failed to prepare a satisfactory payment plan to settle outstanding bills in the current financial year. During the period under review, the county treasury did not provide a report on the settlement of outstanding invoices as of June 30, 2022,” CoB Margaret Nyakango said in the report.

Kiambu County recorded the second highest increase in unpaid bills during the period under review, after arrears increased from Sh2.37 billion to Sh5.87 billion.

Coastal Mombasa County recorded a Sh760 million rise in unpaid bills to close the year with Sh5.87 billion owed to businesses and contractors.

The increase in unpaid bills highlights the disregard by counties of past directives from the Presidency and the National Treasury to clear arrears in a bid to alleviate cash flow problems in the private sector.

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