Governors to Face Senators Over Delayed Salaries

Governors are facing Senate scrutiny over billions of shillings in unpaid salaries, pension contributions and statutory deductions owed to county employees. The growing debt has raised concerns about workers’ financial security and the management of public funds.

County governments had accumulated Ksh100.24 billion in salary arrears and statutory deduction liabilities by June 30, 2026, according to figures presented by Controller of Budget Margaret Nyakang’o. County executives accounted for Ksh98.44 billion, while county assemblies owed approximately Ksh1.80 billion.

Senators Demand Answers From Governors

Senators want affected county administrations to explain the outstanding debts and provide clear repayment plans. Their scrutiny focuses on salaries, pension contributions, taxes and other deductions withheld from employees but not remitted to the relevant institutions.

Failure to remit these deductions can leave workers struggling financially and undermine their retirement benefits. Employees may discover that contributions recorded on their payslips have not reached their intended pension schemes or agencies.

Nyakang’o attributed the growing liabilities partly to poor budgeting and the use of funds intended for statutory deductions to meet other expenses. The situation has intensified calls for county governments to account for money collected or withheld on behalf of workers.

New System Targets Unpaid Deductions

A new system linking payroll processing with financial management systems became operational on July 1, 2026. The reform aims to ensure statutory deductions reach the relevant institutions when counties process salaries.

However, the system will not automatically clear debts accumulated before its introduction. County governments must still develop plans to settle existing liabilities while preventing new arrears.

The Senate is also examining the wider pension burden facing county administrations. Retirement Benefits Authority Chief Executive Officer Charles Machira reportedly put outstanding county pension debt at Ksh118.8 billion.

That figure includes Ksh17.7 billion in principal, Ksh99.1 billion in accumulated penalties and an actuarial deficit of Ksh2 billion. The penalties have significantly increased the burden facing counties that have failed to meet their pension obligations.

Counties Face Pressure to Settle Debts

In February 2026, the Senate County Public Accounts Committee directed the Auditor-General to examine salary arrears, unpaid gratuities and unremitted deductions across all 47 counties. The committee began its scrutiny with Bungoma County, where officials faced questions about outstanding liabilities in the 2024/2025 financial statements.

The latest Senate scrutiny adds pressure on governors to account for unpaid employee obligations and explain how they intend to clear them. County administrations must now demonstrate how they will protect workers’ earnings, meet statutory obligations and prevent further accumulation of debt.