A report released by the Controller of Budget (CoB) on Wednesday noted the figure comprised Sh271.16 billion in recurrent expenditure obligations and Sh194.71 billion relating to development projects.
The report indicates that the stock of unpaid bills remains a significant fiscal risk, affecting suppliers, contractors and service providers engaged by government entities.
“Pending bills continue to constrain service delivery and project implementation, while exposing government to litigation and additional costs,” the report states.
Development-related pending bills accounted for about 42 percent of the total, highlighting challenges in financing infrastructure and other capital projects.
The CoB linked some implementation delays to operational challenges associated with the Electronic Government Procurement (e-GP) system, which has slowed procurement processes in several institutions.
The findings come at a time when Kenya’s public debt has risen to Sh12.82 trillion and debt repayments have consumed Sh1.35 trillion during the first nine months of the financial year.
Kenya’s public debt rose by 9 percent in the first nine months of the 2025/26 financial year, pushing the country further above the legal debt threshold.
The debt stock increased from Sh11.8 trillion recorded at the end of June 2025, equivalent to 69.9 per cent of Gross Domestic Product (GDP), exceeding Parliament’s recommended debt anchor of 55 per cent of GDP by 14.9 percentage points.
“The stock of public debt increased from Sh11.80 trillion as at June 30, 2025 to Sh12.82 trillion as at March 31, 2026, representing a growth of 9 per cent,” the report states.
Domestic debt accounted for the largest share of the increase, rising by 13 per cent from Sh6.22 trillion to Sh7.05 trillion, driven by increased issuance of Treasury bills and bonds.
External debt grew by 4 percent to Sh5.77 trillion, reflecting additional external borrowing and exchange rate movements.
The report also flagged growing reliance on spending outside approved budget provisions through Article 223 of the Constitution, with such expenditures rising nearly sixfold to Sh276.99 billion by March.
The CoB report shows the amount was significantly higher than the Sh48.88 billion recorded during the corresponding period of the 2024/25 financial year.
“The continued increase in Article 223 expenditures raises concerns regarding adherence to budget credibility and the principle of prior parliamentary approval,” the report notes.
