Kisumu Governor Anyang’ Nyong’o’s administration aims to clear most of the county’s outstanding bills before 2027 general election, with priority given to settling billions of shillings owed to contractors and suppliers.
County Executive Committee Member for Finance George Okongo said the county had developed a payment roadmap to reduce pending bills, with contractor and supplier debts taking precedence.
Okongo said as of June 30, 2025, Kisumu’s pending bills stood at Sh 6.5 billion. “After verification and payment of Sh 2 billion, pending bills dropped to 4.5 billion shillings,” he said.
The outstanding amount comprises Sh 2.7 billion owed to contractors and suppliers, Sh 1.8 billion in legal claims and court decrees, and Sh 900 million in pension liabilities.
Okongo said the county had planned to pay Sh 2.7 billion in contractor and supplier debts during the previous financial year but managed to settle Sh 2 billion, representing 74 percent of the target.
“The unpaid balance of Sh 700 million was carried forward after verification into the new financial year,” he said.
The county has allocated Sh 1.4 billion in the current financial year to reduce pending bills, leaving an estimated balance of Sh 400 million to be carried forward.
“We have budgeted to pay Sh1.4 billion in this financial year and carry forward a balance of Sh 400 million. It is possible for Governor Nyong’o to clear the contractors before the general elections,” Okongo said.
He said legal claims remained a significant challenge, noting that the county inherited Sh 1.8 billion in liabilities from former local authorities, with many debts increasing because of accumulated interest and penalties.
“There are cases where an initial debt of Sh 20 million has risen to Sh 230 million, while another claim of Sh 75 million has grown to Sh120 million because of court decrees,” he said.
Okongo said county officials had faced arrests and detention over unpaid court awards. He added that pension-related liabilities had also grown sharply.
A debt of Sh 93 million owed to the Local Authorities Pension Trust and county pension scheme had increased to Sh 281 million because of interest and penalties, while arrears owed to the National Social Security Fund stood at Sh 680 million, including interest.
“Most of these pending bills have escalated because of interest and penalties. We have engaged in negotiations on the way forward,” he said.
The county’s debt reduction strategy came under scrutiny this week when Nyong’o appeared before the Senate Public Accounts Committee.
Committee Chairperson Moses Kajwang’ questioned whether the governor intended to leave office with billions of shillings in unpaid obligations.
“Are you planning to hand more than Sh 5.9 billion in debt to the next administration?”. Do you have a payment plan, and have you submitted it to the Controller of Budget? To what extent has this debt been reduced?” Kajwang’ asked.
Kajwang’ said the county’s pending bills remained a concern because they represented more than 60 percent of annual revenue of about Sh 9 billion, well above the 20 percent debt-to-revenue threshold.
The senators also questioned what they described as a 108 percent increase in pending bills within a single financial year.
Kisumu Senator Prof Tom Ojienda sought details of the county’s strategy for reducing the growing debt burden.
Okongo attributed the increase largely to court rulings requiring the county to settle long-standing claims, including liabilities arising from a consent agreement with the National Housing Corporation, as well as weak local revenue collection.
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