Kenya’s unpaid government bills remain heavily concentrated in state corporations, with public universities, road agencies, health institutions and energy utilities responsible for most supplier debts that have remained unpaid for more than six months.
According to a recent report from the Office of the Controller of Budget, trade payables older than six months stood at KSh 468.48 billion as of December 2025, down from KSh 524.07 billion a year earlier, marking an 11% year-on-year improvement.
State corporations, statutory agencies and state-owned enterprises account for KSh 368.84 billion, roughly 79% of the total arrears, while ministries, departments and agencies (MDAs) account for the remaining KSh 99.64 billion.
These obligations include unpaid bills to contractors and suppliers, as well as unremitted statutory deductions and pension arrears.
Universities Carry the Largest Share
Public universities hold the largest cluster of overdue supplier payments. The education sector alone accounts for KSh 83.53 billion in unpaid obligations.
The University of Nairobi (UoN) carries the largest balance at KSh 15.96 billion, followed by Kenyatta University (KU) with KSh 14.32 billion.
Other universities with significant arrears include:
-
Jomo Kenyatta University of Agriculture and Technology (JKUAT) – KSh 10.38 billion
-
Moi University – KSh 10.18 billion
-
Technical University of Kenya (TUK) – KSh 10.08 billion
-
Egerton University – KSh 9.59 billion
Several smaller institutions also report substantial unpaid balances. These 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 add to the backlog, with the Kenya National Examinations Council (KNEC) alone reporting KSh 4.41 billion in outstanding obligations.
Road, Health and Energy Agencies
Large payment delays also persist in the infrastructure sector. Road authorities collectively owe more than KSh 93.34 billion to contractors and suppliers.
The Kenya National Highways Authority (KeNHA) accounts for the largest share at KSh 56.43 billion, including KSh 6.36 billion in penalty interest.
Other major balances include:
-
Kenya Rural Roads Authority (KeRRA) – KSh 28.54 billion, including KSh 3.91 billion in penalties
-
Kenya Urban Roads Authority (KURA) – KSh 4.91 billion
-
Nairobi Metropolitan Area Transport Authority – KSh 3.15 billion, including KSh 1.78 billion in penalties
In the health sector, the Social Health Authority (SHA) carries KSh 41.51 billion in outstanding obligations, the largest balance among healthcare institutions.
Major hospitals and agencies also report sizeable arrears:
-
Kenyatta National Hospital – KSh 5.58 billion
-
Kenyatta University Teaching and Referral Hospital – KSh 3.44 billion
-
Kenya Medical Supplies Authority (KEMSA) – KSh 3.16 billion
-
Moi Teaching and Referral Hospital – KSh 1.51 billion
The Kenya Medical Research Institute (KEMRI) reports KSh 2.05 billion, including KSh 1.45 billion in penalty interest.
Energy sector institutions also feature prominently. Kenya Electricity Transmission Company (KETRACO) lists KSh 21.20 billion in pending bills, while the Rural Electrification and Renewable Energy Corporation (REREC) reports KSh 13.22 billion.
Also Read: Kenya Literature Bureau Profit Plunges 91% amid Delayed State Book Orders
Meanwhile, Kenya Power and Lighting Company (KPLC) carries KSh 17.77 billion, largely tied to infrastructure expansion projects that rely heavily on contractor financing.
Other State Corporations Under Pressure
Several commercial state corporations also report large outstanding bills.
-
Kenya Railways Corporation – KSh 8.98 billion
-
Postal Corporation of Kenya – KSh 7.58 billion
-
Kenya Broadcasting Corporation (KBC) – KSh 6.55 billion
-
National Oil Corporation of Kenya (NOCK) – KSh 5.61 billion, including KSh 1.03 billion in penalties
-
Kenya Revenue Authority (KRA) – KSh 5.17 billion
Additional agencies with notable balances include Kenya Seed Company (KSh 2.67 billion), Kenya Meat Commission (KSh 1.33 billion), Kenya Literature Bureau (KSh 1.11 billion) and the Agricultural Development Corporation (KSh 1.53 billion).
Arrears within Ministries and Independent Institutions
Among government departments, the National Youth Service (NYS) reports the largest balance at KSh 14.27 billion.
Other large obligations include:
-
National Police Service – KSh 9.86 billion
-
State Department for Agriculture – KSh 9.57 billion
-
State Department for Medical Services – KSh 7.55 billion
-
Correctional Services – KSh 6.15 billion
-
State Department for Transport – KSh 6.15 billion
Independent constitutional institutions also carry outstanding bills. These include the Independent Electoral and Boundaries Commission (IEBC) with KSh 4.93 billion, the National Land Commission with KSh 1.85 billion, and the Judiciary with KSh 590.86 million.
Government Moves to Address Pending Bills
The government has established a Pending Bills Verification Committee to audit and validate historical arrears before payments are made.
Treasury officials have pledged to clear verified claims while introducing reforms aimed at preventing further accumulation. These include stricter adherence to payment timelines and tighter budgetary controls.
Parliament has also urged ministries and state corporations to treat pending bills as a first charge on available funds, while pushing for stronger accountability in loss-making or inefficient state enterprises.
Lawmakers have further recommended structural reforms, including the merger or dissolution of some parastatals, as part of efforts to reduce operational inefficiencies that contribute to the growing backlog of unpaid supplier bills.
