Kisumu, Bungoma and Vihiga owe banks Sh7bn

Controller of Budget Agnes Odhiambo. Ms Odhiambo said that Kisumu, Bungoma and Vihiga counties have the highest debt, owing banks, suppliers and contractors Sh7 billion. PHOTO | DIANA NGILA | NATION MEDIA GROUP

What you need to know:

  • From the 47 regional governments, the three are among the highest defaulters in the 47 regional governments, according to a report by Controller of Budget Agnes Odhiambo.
  • In the report, dated August, Ms Odhiambo says the huge debts resulted from recurrent and development expenditures of the three regional governments.

Kisumu, Bungoma and Vihiga counties have the highest debt, owing banks, suppliers and contractors Sh7 billion.

From the 47 regional governments, the three are among the highest defaulters in the 47 regional governments, according to a report by Controller of Budget Agnes Odhiambo.

The report says of the three, Bungoma is the leading at Sh2.53 billion, followed by Kisumu at Sh2.5 billion and Vihiga at Sh2.02 billion.

The 47 counties are reeling from a debt of more than Sh37 billion , which Ms Odhiambo warned could affect services in the devolved units. The amount is about 16 per cent of the Sh226 billion allocated to the counties in the last financial year.

“As of June 30, 2015, the counties had accumulated bills of Sh37.64 billion comprising Sh28.33 billion for development projects and Sh9.31 billion for recurrent expenditure,” says Ms Odhiambo in her latest report for the 2014/2015 financial year.

In the report, dated August, Ms Odhiambo says the huge debts resulted from recurrent and development expenditures of the three regional governments.

Other counties in the bracket of big borrowers include Nakuru (Sh2.46 billion), Turkana (Sh2.40 billion), Kwale (Sh1.8 billion), Mandera (Sh1.5 billion), Meru (Sh1.6 billion), Mombasa Sh1.4 billion, Murang’a (Sh1 billion), Nairobi (Sh1.2 billion), Uasin Gishu (Sh1.1 billion) and Kisii (Sh1 billion).

In the period, Busia and Tana River counties did not report any pending bills. Other least debtors were Lamu (Sh49 million), Baringo (173 million), Wajir (Sh112 million), Elgeyo-Marakwet (Sh201 million) and Nandi County (Sh209 million).

In the same period, Bomet had not paid Sh200 million, Embu (Sh596 million), Garissa (Sh460 million), Homa Bay (Sh441 million), Isiolo (Sh562 million), Kajiado (Sh984 million), Kakamega (Sh728 million), Kericho (Sh859 million) and Kiambu (Sh608 million).