Nairobi County contractors and suppliers are set to benefit from a Sh1.26 billion allocation following the County Assembly’s adoption of the supplementary budget estimates for the 2024/25 Financial Year.
The allocation comes as a relief to suppliers, who have voiced frustration over delayed payments. According to the Controller of Budget (COB), Nairobi County’s pending bills stand at Sh121.06 billion, accounting for 62% of the total outstanding bills across all counties.
Finance, Budget, and Appropriations Committee Chairman Wilfred Oluoch Odalo emphasized the importance of the additional funds in addressing the county’s supply chain challenges. “This allocation is critical for unlocking the supply chain, which is heavily reliant on the county’s payments,” Odalo noted.
Of the supplementary allocation, Sh513 million will be used to clear pending bills at the County Assembly. Odalo urged the executive to prioritize payments for suppliers who have completed their work.
The approved budget estimates have been revised from Sh43.546 billion to Sh44.47 billion. Recurrent expenditure has increased by Sh3.09 billion to Sh32.39 billion, while development expenditure has been reduced by Sh2.18 billion, dropping from Sh14.3 billion to Sh12.077 billion.
Despite the adjustments, the proposed development expenditure represents only 27% of the overall budget, falling short of the 30% threshold required by the Public Finance Management (PFM) Act of 2012.
In a bid to address key priorities, the supplementary budget includes:- Sh150 million for emergency and disaster management, allocated to the Governor’s office, Sh400 million for the school feeding program and Sh604 million for solid waste management.
The budget also entails Sh300 million for the purchase of health commodities in the health sector.
The budget committee also reinstated Sh200 million for the Ward Development Fund, which had initially been slashed in the proposed estimates.
Odalo stressed the need to prioritize clearing pending bills for Ward Development Programmes in accordance with the law.
This revised budget marks a significant step toward addressing Nairobi’s financial challenges while ensuring critical services and projects receive adequate funding.