Office of the President Defends KSh14.1 Billion Pending Bills, Says Liabilities Were Inherited From Defunct NMS

Office of the President Defends KSh14.1 Billion Pending Bills, Says Liabilities Were Inherited From Defunct NMS

NAIROBI, Kenya — The Executive Office of the President has moved to clarify concerns surrounding billions of shillings in pending bills flagged by the Auditor-General, stating that the bulk of the outstanding obligations were inherited from the defunct Nairobi Metropolitan Services (NMS) and not incurred under the current administration.

The explanation was presented before the National Assembly Public Accounts Committee (PAC) on Tuesday, June 16, as senior officials sought to respond to audit queries regarding unpaid bills amounting to approximately KSh14.5 billion recorded during the 2023/24 financial year.

Appearing before the committee, KSh14.5 billion recorded during the 2023/24 financial year.in the Office of the President Arthur Osiya acknowledged the existence of the pending bills but emphasized that the vast majority of the debt predates the current financial year.

“On the historical pending bills relating to NMS, the office has since submitted them to the Pending Bills Verification Committee under the National Treasury for review,” Osiya told lawmakers.

According to the officials, KSh14.1 billion of the total amount originated from liabilities inherited from the Nairobi Metropolitan Services, which was dissolved after its functions were transferred back to Nairobi City County Government. Only KSh386 million, they said, was accumulated directly by the Office of the President during the year under review.

The revelations emerged after the Auditor-General raised concerns about the growing burden of unpaid government obligations and warned that delayed settlements could negatively impact future budget implementation.

In the audit report, the Auditor-General noted that the outstanding bills had not been settled during the financial year in which they arose and had instead been carried forward into the 2024/25 financial year.

“Failure to settle bills in the year to which they relate adversely affects the implementation of the subsequent year’s budgeted programmes, as the outstanding bills form a first charge on that year’s budget provision,” the report stated.

The findings have reignited debate over pending bills across government institutions, with Parliament intensifying oversight on public spending amid concerns that unpaid obligations continue to strain service delivery and development programmes.

Lawmakers on the PAC sought detailed explanations regarding the nature of the inherited liabilities and the measures being taken to clear them. While officials maintained that most of the debt originated from NMS-era contracts and commitments, some members of the committee expressed dissatisfaction with the responses provided.

Several MPs argued that documentary evidence supporting some of the claims was insufficient, making it difficult for the committee to conclusively address issues raised by the Auditor-General.

The scrutiny comes at a time when public concern over government expenditure remains high, particularly following recent reports highlighting spending patterns within the Executive Office of the President.

Recent reports by oversight agencies have drawn attention to budget implementation in the presidency, with concerns being raised over expenditure levels compared to approved allocations.

According to reports presented earlier this year, the Office of the President had spent KSh11.6 billion within the first nine months of the 2025/26 financial year, surpassing the full-year allocation of KSh8.58 billion.

The latest parliamentary hearing underscores the growing pressure on government institutions to improve financial accountability and strengthen management of public resources.

Analysts note that the verification process being undertaken by the National Treasury’s Pending Bills Verification Committee will be critical in determining the legitimacy of inherited liabilities and charting a path toward settlement.

As Parliament continues examining the matter, attention will now shift to whether the verification exercise confirms the claims made by the Executive Office and how the government intends to clear billions of shillings in outstanding obligations without disrupting future development programmes.

The pending bills issue remains one of the key fiscal challenges facing the government as it seeks to balance accountability, service delivery, and prudent management of public finances amid increasing budgetary pressures.

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Office of the President Defends KSh14.1 Billion Pending Bills, Says Liabilities Were Inherited From Defunct NMS