Governors are under pressure to clear billions of shillings in unpaid workers' salaries and statutory deductions after counties reported Ksh100.24 billion in arrears.

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Controller of Budget Margaret Nyakang’o told the Senate's Labour Committee that arrears had accumulated by June 30, 2026, amid concerns over delayed payments and the diversion of salary deductions.

Speaking on Friday, October 9, Nyakang’o noted that despite a new system introduced on July 1, 2026, to ensure pension contributions and other deductions are remitted automatically, counties still face billions in historical arrears.

The new system integrates the Integrated Financial Management Information System (IFMIS) with the Central Bank of Kenya’s system to facilitate direct remittances during payroll processing.

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However, Nyakang’o noted that the new system does not clear existing debts , leaving county governments responsible for settling outstanding salaries and statutory obligations.

Nyakang’o has previously attributed salary delays in counties partly to late budget submissions and counties’ failure to meet budget approval requirements, which can delay expenditure requisitions through IFMIS.

According to the CoB, some county budgets sometimes lack essential documents, including pending bill payment plans, making it difficult for her office to approve expenditure plans.

The Senate committee also heard that inadequate budgeting and delayed remittances had contributed to the challenges , raising concerns over workers’ financial security and retirement benefits.

Meanwhile, Retirement Benefits Authority (RBA) Chief Executive Officer Charles Machira revealed that county governments’ outstanding pension debt had reached Ksh118.8 billion.

The figure comprises Ksh17.7 billion in principal, Ksh99.1 billion in accrued penalties and an actuarial deficit of Ksh2 billion, raising concern over the growing cost of unpaid pension obligations.

📰 Source: Kenyans.co.ke