Nairobi County is struggling to keep its development programme moving, with 57 projects valued at Sh2.24 billion left incomplete amid delayed payments and growing financial pressure.
A review by the Controller of Budget shows that the county had paid Sh208.88 million towards the affected projects during the 2025/26 financial year, but several works had either stopped or been abandoned.
The county blamed the delays on inadequate funding, failure to settle certified works, contractors pulling out of sites, procurement challenges and other issues linked to contracts.
At the centre of the stalled projects is the Integrated County Revenue Management System/Enterprise Resource Planning (ICRMS/ERP) being developed at City Hall.
The system, which carries an estimated cost of Sh847.2 million, is intended to bring Nairobi's revenue and county operations under one digital platform.
Once completed, it will automate key stages of the revenue process, including assessment, collection and accounting, while improving coordination between different county functions.
Despite Sh150 million having been paid, only 37 per cent of the project had been completed.
The county cited several challenges behind the slow progress, including financing difficulties, procurement matters, contractor-related problems, land issues, design concerns and legal disputes.
Several smaller projects have suffered similar setbacks.
The Sh76 million Mwiki Social Hall and Sh50 million Dandora I Youth Complex are among projects where contractors were no longer on site because they had not been paid.
Work on the Sh42 million Makina Market rehabilitation also stopped over non-payment.
In Embakasi, reconstruction of nine ablution blocks was abandoned after the county failed to settle an initial certificate amounting to Sh2 million.
The stalled projects come against a wider financial strain facing the county, whose outstanding bills increased during the financial year.
Nairobi's pending bills stood at Sh86.9 billion at the end of the 2025/26 financial year, compared with Sh83.1 billion at the beginning of the period.
The Controller of Budget linked some of the stalled works directly to the failure to pay contractors. In several cases, companies left construction sites after carrying out work but waiting for payment for completed works or certified claims.
Projects affected by contractor departures include Makina Market, perimeter walls at Huruma estate, Kabiro Social Hall and electrical works at Mwariro Market.
Some of the projects had already made considerable progress when construction stopped, leaving questions over the prolonged wait for payment and the fate of money that had been committed to the works.
Nairobi paid Sh8.45 billion towards pending bills during the year but accumulated an additional Sh12.36 billion in new obligations.
As a result, the overall amount owed by the county increased instead of falling.
The report further shows that more than 72 per cent of the County Executive's pending bills had remained unpaid for more than two years.
The Controller of Budget has directed Nairobi to give priority to genuine pending bills when preparing and implementing the FY2026/27 budget.
The debts should be treated as the first charge on the budget and cleared using a first-in, first-out approach.
The directive places the county under pressure to balance two competing demands: clearing its old financial obligations while finding resources to complete development projects that have already consumed public funds.