The County Public Accounts Committee (CPAC) has raised alarm over how the Nyandarua County Executive is handling pending bills, urging Governor Moses Kiarie Badilisha to prioritise their payment to prevent the collapse of local businesses.
The Committee noted that Nyandarua closed the 2024/25 financial year with Sh5.1 billion in unpaid bills, against total revenue collection of Sh6.3 billion. The figure is almost double the Sh2.9 billion owed at the end of the 2023/24 financial year. Of the Sh5.1 billion, Sh2.6 billion relates to debts older than three years, dating back to before Governor Badilisha took office.
The issue emerged during CPAC’s review of audit queries raised by the Auditor-General for the year ended June 30, 2025. Members also raised concerns about the controversial Sh1.5 billion JM Kariuki Hospital project, the absence of an internal audit committee, and the voiding of 1,998 transactions worth Sh1.9 billion during the year.
On pending bills, the Committee warned that escalating debts in devolved units threaten devolution and burden small and medium enterprises. Members directed the Governor to prepare a detailed payment plan to protect local suppliers.
“Nyandarua is technically insolvent,” CPAC Chairperson Senator Moses Kajwang said. He added that repeated failures to manage pending bills have undermined confidence in devolved units.
Governor Badilisha, however, disputed the Sh5 billion figure. He said the actual pending bills stand at Sh1.4 billion, explaining that the Sh5.1 billion in the financial statements included Sh1.6 billion in salaries for May and June 2025, which were paid in July after funds were released by the National Treasury.
The Governor also said Sh200 million had been paid in the first half of the current financial year, while Sh998 million was transferred to the Ministry of Defence after the JM Kariuki Hospital project was handed to the national government. Some bills, he added, could not be cleared due to missing supporting documents, and some suppliers never submitted claims. He noted that Sh347 million has been allocated in the current budget to reduce part of the debt.
Senator Kajwang challenged the inclusion of bills without documentation in the county’s books. “The fact that you have captured them in the financial statements means they are payable. You must pay,” he said, adding that the Sh347 million allocation was insufficient and would take too long to settle the backlog.
Vice Chairperson Senator Johnes Mwaruma also demanded a realistic, time-bound plan for clearing the pending bills.
The Committee further instructed the Office of the Controller of Budget to withhold approval of withdrawals from the County Revenue Fund until the outstanding bills are settled.
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