Kilifi County’s financial troubles have come under renewed scrutiny after suppliers and contractors told the Senate County Public Accounts Committee (CPAC) that mounting unpaid bills have pushed some businesses to the brink of collapse.
The suppliers appeared before the committee on Monday, September 21, 2026, during a public engagement at the Kilifi County Assembly in Malindi, where they raised concerns over the management of county finances, procurement records and the payment of pending bills.
The disclosures prompted Senator Moses Kajwang to describe Kilifi as “technically insolvent”, as the committee sought answers over the county’s Sh10.7 billion pending bills.
The amount makes Kilifi’s outstanding obligations the second highest among Kenya’s counties after Nairobi.
Data presented to the committee showed that the county’s revenue-to-debt ratio stood at about 70 per cent, raising concerns about its ability to meet its financial obligations while continuing to provide services.
Kilifi reported total revenue of Sh14.3 billion in the 2024/25 financial year. Of this, Sh12.8 billion came from the equitable share, while Sh1.5 billion was generated through the county’s own-source revenue.
Suppliers told the committee that some debts have remained unpaid for years, with some dating back a decade. They questioned why the county administration was allegedly settling newer obligations while older debts continued to accumulate.
“We are suffering and if you don’t step in and help us, no one will,” said Joshua Chai, chair of the suppliers’ association.
Individual cases highlighted the scale of the problem. One supplier told the committee the county owed him Sh17 million, while another said he was owed Sh16 million.
The suppliers said delayed payments had left some businesses struggling to meet their own financial obligations, with some facing bankruptcy and the possibility of having their assets auctioned.
They also alleged that suppliers are sometimes paid only part of what they are owed and forced to wait for months, in some cases up to a year, before receiving the balance.
Concerns were also raised over procurement and financial records. Suppliers complained of poor record-keeping, unremitted statutory deductions and what they described as a lack of professionalism in the management of county finances.
Of particular concern to the committee were allegations surrounding the processing of payments through the Integrated Financial Management Information System (IFMIS).
According to data from the Office of the Controller of Budget, 612 transactions valued at Sh3.2 billion were voided in IFMIS. The committee linked the transactions to concerns over the accumulation of pending bills and called for scrutiny of the circumstances surrounding the cancellations.
Suppliers further alleged that although their vouchers had been used to initiate requisitions for withdrawals, payments were sometimes ultimately made to other suppliers.
They claimed that politically connected individuals or those willing to offer bribes could receive preferential treatment. These allegations are yet to be fully investigated or established.
The suppliers also said previous efforts to verify the county’s debt had failed to provide a lasting solution. Chai said at least two task forces had been established to verify and validate pending bills, but their findings were never made public.
Kajwang said the Senate should explore mechanisms for settling verified debts directly at source, where sufficient documentation exists to establish that money is legitimately owed.
He also called for the involvement of National Treasury Cabinet Secretary John Mbadi, arguing that the crisis was threatening businesses and the wider local economy.
“You are removing these suppliers from business and with that you are killing the economy,” Kajwang said.
He challenged the Kilifi County Assembly to use its oversight powers to investigate the matter and demand answers from the executive.
“Do a detailed inquiry and demand for answers and bring this cycle of poverty to an end,” he said.
Governor Gideon Mung’aro was scheduled to appear before the committee but was unable to attend after becoming indisposed. The committee directed the Deputy Governor to appear on Tuesday, September 22, to respond to the concerns.
