Busia County Government has proposed allocating Sh600 million in the 2026/2027 financial year to settle pending bills.
Verified pending bills stood at Sh2.64 billion as at the close of 2024/2025 financial year, comprising Sh1.38 billion for recurrent expenditure and Sh1.26 billion for development expenditure.
The county cleared Sh109.2 million in pending bills in December 2025 as part of efforts to reduce the backlog.
Speaking during a public participation forum on the County Fiscal Strategy Paper (CFSP) for the 2026/2027 financial year at Kakapel Cultural Centre in Teso North, County Budget Officer William Chepkwony said the County Treasury will prioritise settlement of verified pending bills as the first charge within the available fiscal space.
He noted that the payments would also be accommodated through supplementary budgets and that allocations would be ring-fenced specifically for clearing pending bills.
Chepkwony further disclosed that the county constituted a Pending Bills Verification Committee during the 2025/2026 financial year to review and validate outstanding obligations as at the close of the 2024/2025 financial year, establishing the total arrears at Sh2.64 billion.
“The commitment by the county government is meant to significantly reduce the accumulation of arrears, restore supplier confidence and enhance the county’s credibility in financial management. In addition, stricter commitment controls will minimise the emergence of new pending bills,” he said.
Meanwhile, the county has proposed allocating Sh300 million in the 2026/2027 financial year to complete stalled and incomplete projects across the region.
Among the projects earmarked for completion is the Malaba Sports Complex, which has been allocated Sh20 million for Phase Two of construction.
The county also plans to complete and operationalise the Simba Chai Cassava Processing Plant in Teso South. Construction of the project began in the 2012/2013 financial year under the East African Agricultural Productivity Project (EAAPP) and was intended to benefit 15,000 cassava farmers by providing a direct market for their produce.
“Initially, the project focused on bulking cassava through farmer groups as the factory was intended to offer a stable market for cassava farmers in Busia County,” a statement from the county government’s project status report reads.
The CFSP will guide the 2026/2027 budget estimates, with the county proposing total expenditure of Sh9.79 billion.
Currently, the county is implementing a Sh10.037 billion budget for the 2025/2026 financial year, having recorded an absorption rate of 42 percent in the first half of the year.
By Moses Wekesa
