Controller of Budget Margaret Nyakang’o/ HANDOUTThousands of county workers are staring at a miserable life in retirement as devolved units increasingly fail to remit statutory deductions, including pensions.
A new report by Controller of Budget Margaret Nyakang’o reveals the devolved units have accumulated Sh100.24 billion in unpaid salaries and statutory deductions.
“County governments reported outstanding salary arrears and statutory deductions trade payables totalling Sh100.24 billion,” Nyakang’o says in the County Budget Implementation Review Report for the financial year 2025-26.
Of this, Sh98.44 billion was owed by county executives, while county assemblies accounted for another Sh1.80 billion.
This implies that workers serving in county hospitals, offices and other public facilities could enter retirement with deductions made from their pay still sitting in government accounts.
Statutory deductions cover money that should ordinarily be remitted to the relevant institutions, such as pension firms.
This means that delays could leave workers exposed even after their salaries have been processed.
The most worrying case is Nairobi, where the county executive alone had accumulated Sh85.78 billion in salary arrears and statutory deductions.
The liability included Sh49 billion that had remained unpaid for more than three years, while another Sh13.53 billion was between two and three years old.
A further Sh11.89 billion had been outstanding for between one and two years, while Sh11.36 billion was less than a year old.
Nairobi county assembly has Sh162.78 million in similar obligations.
Outside Nairobi, Machakos had the second-highest county executive liability at Sh1.95 billion.
Some Sh1.62 billion had been outstanding for less than one year, while Sh325.51 million had remained unpaid for more than three years.
Mombasa followed with Sh1.33 billion, including Sh700.02 million unpaid for more than three years. Murang’a reported Sh1.10 billion, while Meru had Sh901.21 million and Kiambu Sh686.71 million.
Bungoma and Wajir each had more than Sh662 million in county executive obligations.
Bungoma’s liability included Sh580.26 million unpaid for more than three years, while the entire Sh662.28 million reported by Wajir was also more than three years old.
Taita Taveta reported Sh629.89 million, with Sh452.27 million having remained outstanding for more than three years. Kisii had Sh631.68 million, while Nakuru reported Sh535.53 million, including Sh532.72 million in obligations aged between two and three years.
Some county assemblies also reported substantial liabilities.
Busia had Sh506.63 million, including Sh315.70 million aged between one and two years. Migori reported Sh495.61 million, with Sh469.34 million outstanding for more than three years.
Kakamega had Sh144.63 million in assembly obligations, while Uasin Gishu reported Sh66.26 million and Wajir Sh71.94 million.
More than Sh52.45 billion of the county executive obligations had been outstanding for over three years.
INSTANT ANALYSIS
The report exposes a Sh100.24 billion salary and statutory deductions crisis across county governments, with Nairobi alone accounting for Sh85.78 billion — about 86 per cent of the total. Alarmingly, Sh52.45 billion of county executive arrears are more than three years old, signalling prolonged failure to meet payroll and statutory obligations. Machakos, Mombasa, Murang’a and Meru also carry significant liabilities. The figures reveal deep financial management weaknesses, raising concerns over workers’ welfare, statutory compliance and counties’ ability to sustain essential services.
