Kilifi County’s Sh10.7 billion pending bills have come under Senate scrutiny after suppliers and contractors warned that prolonged payment delays are pushing businesses into financial distress and threatening their survival.
The suppliers raised their concerns on Monday during a public engagement with the Senate County Public Accounts and Investments Committee at the Kilifi County Assembly in Malindi, where they detailed the impact of unpaid county contracts.
The Sh10.7 billion debt makes Kilifi the second-most indebted county after Nairobi, according to figures presented to the committee. Committee chairman Moses Kajwang described the financial position as one that required urgent attention, warning that the unpaid bills were hurting businesses and the wider local economy.
“We are suffering and if you don’t step in and help us, no one will,” said Joshua Chai, chairman of the Kilifi County Merchants & Contractors Association.
One supplier told the committee that the county owes him Sh17 million, while another said he was owed Sh16 million.
The suppliers said delayed payments had left some businesses struggling to meet their financial obligations, with some facing bankruptcy and possible auction of their assets.
They also complained that the county sometimes pays only part of the money owed, forcing suppliers to wait for the balance for months and, in some cases, up to a year.
Some questioned why bills dating back as far as a decade remain unsettled while newer obligations are allegedly being paid.
Kilifi received Sh14.3 billion in total revenue in the 2024/25 financial year, comprising Sh12.8 billion in equitable share and Sh1.5 billion in own-source revenue.
The pending bills therefore amount to about 70 per cent of the county’s revenue for the financial year, according to the figures presented to senators.
Kajwang said the situation was having consequences beyond the county government’s accounts.
“You are removing these suppliers from business and with that you are killing the economy,” he said.
He challenged the Kilifi County Assembly to use its oversight powers to establish how the debt accumulated and demand answers from the County Executive.
“Do a detailed inquiry and demand for answers and bring this cycle of poverty to an end,” he said.
The suppliers also raised questions about previous efforts to verify the outstanding claims. Chai said at least two task forces had been formed to validate the pending bills, but their findings were never made public.
The committee further raised concerns over county financial management after data from the Office of the Controller of Budget showed that 612 transactions worth Sh3.2 billion had been voided in IFMIS.
Suppliers alleged irregularities in the payment process, including claims that vouchers belonging to some suppliers were used to initiate requisitions before payments were made to others. They also alleged that politically connected businesses and suppliers willing to offer bribes received preferential treatment. The claims have not been established and require investigation.
Governor Gideon Mung’aro was scheduled to appear before the committee but did not attend after reporting that he was indisposed. The committee instead directed Deputy Governor Florence Chibule to appear and explain the county’s financial position.
Kajwang has proposed a framework through which verified and properly documented bills could, where legally possible, be paid at source. He has also called for National Treasury Cabinet Secretary John Mbadi to be involved in resolving the issue.
The committee is seeking an explanation of how the Sh10.7 billion debt accumulated, records supporting the pending bills and a clear account of how legitimate suppliers will be paid.