Nyeri: The Nyeri County Government has announced an ambitious Sh8.5 billion budget for the 2025/2026 fiscal year, while also grappling with a significant backlog of pending bills due to delayed disbursements from the national government.
According to Kenya News Agency, Robert Thuo, the County Executive in Charge of Finance and Economic Planning, expressed concerns about the county's increasing pending bills, which are projected to carry forward Sh128.8 million into the new financial year. This amount includes Sh58.5 million owed to contractors and suppliers for recurrent expenditures and Sh70.3 million under the development vote. Thuo emphasized that the delayed disbursement of equitable share funds from the National Treasury has necessitated rolling over these bills to the new budget.
Thuo reaffirmed the county's commitment to ensuring payment to all contractors and service providers, contingent on the timely disbursement of funds by the exchequer. Nyeri County typically receives Sh6.5 billion annually from the National Treasury as its equitable share, but recent delays have led to poor utilization of these funds and hindered effective service delivery.
The newly unveiled budget allocates Sh5.8 billion (68%) for recurrent expenditure and Sh2.68 billion (32%) for development projects. Key sectors prioritized include health, education, agriculture, and infrastructure, with significant funds set aside for the Department of Roads, Public Works, and Energy. This department will receive Sh498.9 million, with substantial allocations for road maintenance, machinery upkeep, and street lighting.
The Education Department is earmarked Sh498.15 million, focusing on constructing new Early Childhood Development and Education (ECDE) centers, upgrading youth polytechnics, and improving educational materials. Agriculture receives Sh360.4 million, aimed at enhancing food security and agricultural productivity. The Health Department is allocated Sh286.5 million, emphasizing medical supplies, rural health facilities, and infrastructure improvements.
The budget is balanced through equitable share funds, conditional grants, and loans totaling Sh1.2 billion, along with targeted revenue collections of Sh800 million and Sh850 million from the Nyeri Health Services Fund. Thuo also announced new revenue-raising measures, including a service charge for professionals and new licenses for international schools.
Additionally, the county plans to reduce land rates and offer rent reductions for businesses operating in the Field Marshal Muthoni Kirima terminus. Thuo also hinted at potential new taxes in the health sector to align charges with Social Health Authority rates, aiming to make essential healthcare more accessible while eliminating outdated fees.