Counties struggling to recover car loans and mortgages

Counties are facing a significant hurdle in reclaiming public funds disbursed as car loans and mortgages.

For the 2024/25 financial year, the Auditor General’s report identifies several regions where recovery efforts for both the Executive and Assembly arms have stalled, leaving millions of shillings in limbo.

Within the Executive branches, Uasin Gishu leads with the highest outstanding amount at Sh118.94 million, followed by Nyamira at Sh51.18 million and Kajiado at Sh14.38 million.

The situation is mirrored in the County Assemblies, where Mombasa is struggling to recover Sh53.56 million. Marsabit and Samburu assemblies also face significant deficits, with Sh26.89 million and Sh14.82 million outstanding, respectively.

"These debts also strain county budgets, potentially diverting resources from essential services like health, infrastructure, and education. With counties already facing funding pressures, unrecovered loans compound the challenge of delivering on development mandates."