County governments across Kenya have recorded a debt of KSh156.84 billion as of March 2026, according to the budget report for the financial year 2025/ 2026.
Out of the 47 counties, Nairobi emerged as Kenya’s most indebted county, accounting for more than half of all pending bills owed by county governments across the country.
“County governments reported outstanding trade payables of KSh156.84 billion during the reporting period, “the County Governments Budget Implementation Review Report for the first nine months of FY 2025/26 indicated.
Of the total debt, Nairobi City County owed KSh81.79 billion, representing approximately 52 percent of the total outstanding county debt, according to the report.
The county debts, according to the report, comprised of unpaid obligations for goods and services supplied to counties, salary arrears, and outstanding statutory deductions.
Nationally, the debt stock consisted of KSh116.50 billion in recurrent expenditure obligations and KSh40.34 billion linked to development projects.
Nairobi among Counties with the Highest Pending Bills
As Nairobi tops the debt list, Kilifi County ranked second with KSh6.40 billion in outstanding debt, followed by Kiambu County with KSh5.5 billion and Machakos County with KSh5.4 billion.
Mombasa County also featured among the most indebted counties, with over KSh5.3 billion in pending bills, while Wajir County reported approximately KSh4.8 billion.
Other counties among the top debt holders included Kakamega, Narok, Nakuru, and Meru, each carrying billions of shillings in outstanding obligations.
Also Read: Kenya’s 2026/27 Budget Endorsed by Economic Experts Despite Debt and Inflation Worries
Nairobi’s Debt Burden
Of the county’s KSh81.79 billion debt, KSh41.37 billion, representing about 51 percent, comprises salary arrears and unremitted statutory deductions.
The county has also struggled to clear historical debts. An estimated 76 percent of Nairobi’s pending bills have remained unpaid for more than three years,
Despite ongoing efforts to reduce the debt stock, Nairobi settled only KSh4.98 billion, equivalent to about 6 percent of its total pending bills during the review period.
Counties with Aging Debt.
Mombasa County reported one of the highest proportions of aged debt, with 98 percent of its pending bills outstanding for more than three years.
In addition, Wajir County followed at 80 percent, while Mandera County reported 75 percent.
Further, the report revealed that Murang’a County had 74 percent of its pending bills older than three years, while Kiambu County recorded 67 percent.
Also Read: Nairobi Set for Major Overhaul as KURA Announces Tender for Smart Traffic Systems, Bridges and CCTVs
Top 10 County Debt Comparison
| Rank | County | Pending Bills |
| 1 | Nairobi City | KSh81.79 Billion |
| 2 | Kilifi | KSh6.40 Billion |
| 3 | Kiambu | KSh5.55 Billion |
| 4 | Machakos | KSh5.46 Billion |
| 5 | Turkana | KSh4.81 Billion |
| 6 | Narok | KSh4.40 Billion |
| 7 | Kitui | KSh4.07 Billion |
| 8 | Bungoma | KSh3.38 Billion |
| 9 | Kakamega | KSh3.23 Billion |
| 10 | Kisumu | KSh2.63 Billion |
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