The Busia County Government has pledged to clear its Sh2.6 billion pending bills owed to local suppliers by the end of the 2026/2027 Financial Year, in what Governor Paul Otuoma described as a bold step toward restoring fiscal discipline and rebuilding public trust.
Speaking before the Senate Standing Committee on Finance and Budget in Busia Town during the Senate Mashinani program, Governor Otuoma said the county had devised a two-year plan that will see 30 percent of its annual budget committed to settling the long-standing debts, supplemented by additional allocations through supplementary budgets.
“My county executive will dedicate 30 per cent of the current budget to pending bills, amounting to Sh781 million. An additional Sh520 million will be factored in through a supplementary budget. This totals an expected reduction of Sh1.3 billion in the current year,” he explained.
He added that a similar approach will be applied in the 2026/2027 Financial Year, saying, “The county will again commit 30 per cent of its budget to the bills, and another Sh520 million will be set aside through a supplementary budget. This is expected to clear the remaining balance of approximately Sh1.3 billion by 2027.”
The Governor noted that the decision followed extensive consultations and a painful review process that initially identified only about Sh600 million as “eligible for payment.”
To address the backlog, he said an implementation committee had been formed to verify other claims, especially those lacking proper documentation.
“I think one of the hardest decisions that I had to make was to stop initiating new projects and clear the pending bills before we can begin new programs,” he told the committee, adding that the county would also intensify internal revenue collection to avoid future accumulation of debt.
However, Senators pressed Otuoma to provide a concrete framework to ensure transparency and fairness in the payment process. Committee Vice Chairperson Senator Tabitha Mutinda questioned the delay in settling the bills.
“Tell us directly how you’re planning to clear the Sh2.6 billion pending bills. Why haven’t you paid these bills in the last three financial years, which you now say you will pay?” she demanded.
Busia Senator Okiya Omtatah, appearing as a friend of the Committee, raised concerns over what he termed a lack of objective criteria for payments.
“It disturbs me that you do not have clear and objective criteria for paying these pending bills. You can choose who to pay and who not to pay. I’m not seeing any logic in the way you are clearing these pending bills,” he said.
He further accused the county of managing payments “in a manner that they influence,” suggesting that officials were prioritizing new debts over older ones.
Other Senators present included Mohamed Faki (Mombasa), Mariam Omar (Nominated), and Esther Okenyuri (Nominated), who echoed calls for accountability and timely payments to safeguard the livelihoods of suppliers dependent on the county’s business ecosystem.