Kenya’s unpaid government bills are still heavily concentrated in state corporations, with public universities, road authorities, health agencies and energy utilities accounting for much of the supplier debts older than six months.
- •Trade payables older than six months totaled KSh 468.48 billion at the end of December 2025, down from KSh 524.07 billion a year earlier, an improvement of about 11% year-on-year, according to a recent report by the Office of the Controller of Budget.
- •State corporations, statutory agencies, and state-owned enterprises account for KSh368.84 billion, roughly 79% of the total, while ministries, departments and agencies (MDAs) account for only KSh 99.64 billion.
- •Trade payables at state corporations include unpaid obligations to contractors and suppliers as well as unremitted statutory deductions and pension arrears.
Public universities collectively hold the biggest cluster of unpaid supplier bills, with the education sector alone accounting for about KSh 83.53 billion in overdue obligations. The largest balances sit with University of Nairobi (UoN), which owes KSh 15.96 billion, followed by Kenyatta University (KU) at KSh 14.32 billion.
Other heavily indebted institutions include Jomo Kenyatta University of Agriculture and Technology (JKUAT) with KSh 10.38 billion, Moi University with KSh 10.18 billion, Technical University of Kenya (TUK) with KSh 10.08 billion, and Egerton University with KSh 9.59 billion.
Additional universities with notable arrears include Multimedia University of Kenya (KSh 1.75 billion), Tom Mboya University (KSh 1.03 billion), Kisii University (KSh 920.08 million), Murang’a University of Technology (KSh 887.08 million), Jaramogi Oginga Odinga University of Science and Technology (KSh 692.61 million) and Kibabii University (KSh 535.90 million).
Education agencies also carry additional arrears, including Kenya National Examinations Council (KNEC) at KSh 4.41 billion, while a number of national polytechnics and training institutions report smaller balances.
Road, Health, and Energy Bills
Infrastructure contractors also face large payment delays, particularly in the roads sector, where agencies collectively owe more than KSh93.34 billion. The Kenya National Highways Authority (KeNHA) accounts for the largest share with KSh56.43 billion, including KSh6.36 billion in penalty interest.
The Kenya Rural Roads Authority (KeRRA) follows with KSh 28.54 billion, including KSh 3.91 billion in penalties, while the Kenya Urban Roads Authority (KURA) carries KSh 4.91 billion. The Nairobi Metropolitan Area Transport Authority lists KSh 3.15 billion, including KSh 1.78 billion in interest penalties tied to delayed payments.
In the health sector, the Social Health Authority (SHA), which replaced the National Hospital Insurance Fund (NHIF), carries KSh 41.51 billion in unpaid obligations, the largest single balance among health entities.
Major hospitals and agencies also report sizable arrears, including Kenyatta National Hospital with KSh 5.58 billion, Kenyatta University Teaching and Referral Hospital with KSh 3.44 billion, Kenya Medical Supplies Authority (KEMSA) with KSh 3.16 billion, and Moi Teaching and Referral Hospital with KSh 1.51 billion.
The Kenya Medical Research Institute (KEMRI) reports KSh2.05 billion, including KSh 1.45 billion in penalty interest tied to delayed payments.
In the energy sector, the Kenya Electricity Transmission Company (KETRACO) shows KSh21.20 billion in pending bills, while the Rural Electrification and Renewable Energy Corporation (REREC) lists KSh13.22 billion. The Kenya Power and Lighting Company (KPLC) reports KSh17.77 billion. These obligations largely reflect infrastructure and electricity network expansion projects that rely heavily on contractor financing.
Other commercial state corporations creaking under the weight of unpaid bills include the Kenya Railways Corporation reports KSh8.98 billion, Postal Corporation of Kenya KSh7.58 billion, and Kenya Broadcasting Corporation (KBC) at KSh6.55 billion. The National Oil Corporation of Kenya (NOCK) lists KSh5.61 billion, including KSh1.03 billion in penalty interest, while the Kenya Revenue Authority (KRA) reports KSh5.17 billion in outstanding obligations.
Structural Inefficiencies
Other agencies with notable balances include Kenya Seed Company (KSh2.67 billion), Kenya Meat Commission (KSh1.33 billion), Kenya Literature Bureau (KSh1.11 billion) and Agricultural Development Corporation (KSh1.53 billion).
The National Youth Service (NYS) carries the largest ministry balance at KSh14.27 billion. Following it, the National Police Service reports KSh9.86 billion, while the State Department for Agriculture shows KSh9.57 billion. Other large balances include Correctional Services (KSh6.15 billion), the State Department for Transport (KSh6.15 billion), and the State Department for Medical Services (KSh7.55 billion).
Independent institutions also report arrears, including the Independent Electoral and Boundaries Commission (IEBC) with KSh4.93 billion, the National Land Commission with KSh1.85 billion, and the Judiciary with KSh590.86 million.
The government has moved to rein in mounting obligations through a Pending Bills Verification Committee, tasked with auditing and approving historical arrears before payment. Treasury officials have pledged to clear verified claims while recommending reforms to prevent future accumulation, including stricter adherence to payment timelines and improved budgetary controls.
Parliament has also pressed ministries and state corporations to prioritize pending bills, treating them as a first charge on available funds, while pushing for greater accountability in loss-making or inefficient state-owned enterprises. Lawmakers have also urged structural reforms, including merging or dissolving certain parastatals to reduce operational inefficiencies that contribute to the backlog.
Related:
Revenue Boom in Arid Counties, But Pending Bills Threaten Fiscal Gains
Controller of Budget Urges Treasury to Clear KSh 524.8Bn in Pending Bills
Parliament Pushes for Faster Reform of State-Owned Enterprises, Limits Budget to KSh 2.88Trillion
