Senators grill Sakaja over pending bills, procurement gaps

The Senate Standing Committee on Finance and Budget has intensified scrutiny on county governments over rising pending bills, procurement irregularities and failure to comply with statutory reporting requirements.

Lawmakers question how billions owed to suppliers continue to accumulate despite existing financial oversight systems.

The committee, chaired by Mandera Senator Ali Roba, on Wednesday held a high-stakes session with Nairobi City County Governor Johnson Sakaja, focusing on concerns raised by the Public Procurement Regulatory Authority (PPRA) regarding non-uploading of procurement data to the Public Procurement Information Portal (PPIP), structural deviations from standard tender documents, and delayed settlement of supplier obligations.

The oversight comes against a national backdrop of growing concern over county pending bills, which have in some instances crippled small businesses, delayed service delivery, and triggered legal disputes. Suppliers have repeatedly accused devolved units of awarding contracts without timely payment, forcing many into financial distress.

Appearing before the committee, Governor Sakaja attributed earlier reporting gaps in the 2022/2023 financial year to institutional transition challenges following his assumption of office. He, however, assured senators that the county has since corrected the deficiencies.

“All consolidated procurement plans, contract awards and termination records have now been fully uploaded to the PPIP portal,” Sakaja said, adding that his administration had strengthened internal compliance systems to prevent future delays.

He noted that Nairobi County has recruited 25 professional supply chain management officers, rolled out capacity-building programmes, and upgraded ICT infrastructure to ensure real-time compliance with procurement reporting requirements.

On allegations of deviation from standard tender documents, Sakaja defended the county’s procurement practices, saying modifications were lawful under Section 74 of the Public Procurement and Asset Disposal Act, 2015.

“These adjustments were made strictly to align with the technical requirements and scope of specific projects, without compromising fairness or open competition,” he said.

The governor further told the committee that some historical procurement issues fell under the defunct Nairobi Metropolitan Services (NMS), distancing the current administration from legacy liabilities.

However, senators sharply interrogated the explanations, with Kakamega Senator Boni Khalwale challenging the legality of altering standard procurement documents.

“You are therefore confirming that, yes, you made those alterations. That should worry you, Governor, on the quality of this answer,” Khalwale said.

At the centre of the hearing was also the growing burden of pending bills owed to suppliers, which has become a recurring fiscal crisis across counties.

Businesses contracted to provide goods and services have complained of delayed payments stretching for years, despite verified delivery of work.

Nominated Senator Essy Okenyuri pressed the county on the absence of clear timelines for settling outstanding obligations.

“While most of the responses acknowledge the obligation to prioritize settlement upon availability of funds, there is no commitment on when that will happen,” she said.

Committee Vice Chairperson Senator Tabitha Mutinda, while acknowledging the detailed submissions from Nairobi County, emphasized the Senate’s constitutional oversight role, noting that compliance failures had become systemic across devolved governments.

“No money has been lost as far as these concerns are being raised. It is a matter of why your team is not doing what they are supposed to do,” she said.

On pending bills, the county explained that statutory levies are deducted and remitted upon payment, while verified outstanding obligations remain captured in a structured registry awaiting phased settlement.

Due to the volume and technical nature of the documents presented, the committee ruled that it could not conclusively verify the records during the session. It therefore directed the PPRA technical team to undertake a detailed audit of the county’s submissions.

Chairperson Ali Roba said the Senate would reconvene after receiving a full compliance report.

“Considering the data is in your system, it is only fair that we allow technical verification and then get back to us on whether the issues have been satisfactorily addressed,” he said.