The Senate County Public Accounts Committee has declared Kilifi County technically insolvent, citing mounting pending bills and revenue leakages that are affecting service delivery to residents.
Speaking after inspecting the proposed Kilifi County Headquarters and the proposed Outpatient Block at Kilifi County Referral Hospital, Committee Chairperson Moses Kajwang said the county owes suppliers about Ksh10 billion in pending bills.
Kajwang said Kilifi County receives approximately Ksh12.8 billion in revenue, meaning that if the county were to settle all its pending bills, only about Ksh3.6 billion would remain to finance its operations, which would not be enough to meet its obligations and pay workers.
The senator noted that the county’s debt-to-revenue ratio has risen to more than 65 percent, against a recommended threshold of about 20 percent.
The committee also raised concerns over revenue collection, noting that Kilifi has the potential to collect between Ksh4 billion and Ksh5 billion but currently records only about Ksh1.4 billion.
The concerns were expected to be raised with Governor Gideon Mung’aro, who did not appear before the committee on Monday, citing illness.
The committee has since resolved to summon Deputy Governor Flora Chibule to appear before it on Thursday at 10am at the Kilifi County Assembly, where the Senate has pitched tent for the fifth edition of the Senate Mashinani Tour.
The senators will use the engagement to seek answers on Kilifi County’s financial position, revenue collection and measures being taken to address its growing pending bills.
The committee says the outstanding debts have left the devolved unit facing legal suits that could force the county to pay additional costs to suppliers over its failure to meet contractual obligations.
