Sakaja fake supplier bills
A fresh audit has revealed a shocking Sh39.8 billion discrepancy in Nairobi County’s pending bills register, raising serious questions about financial governance under Governor Johnson Sakaja’s administration. The audit, conducted by the Controller of Budget (CoB), shows billions mysteriously wiped off the books without clear documentation, sparking fears of widespread fraud and fake supplier claims.
Billions Vanish from City Hall Books
According to Controller of Budget Dr. Margaret Nyakang’o, Nairobi’s supplier arrears dropped dramatically by 32.7 percent — from Sh121.8 billion in June 2024 to Sh86.8 billion by June 2025.
While county officials claim the reduction is due to the elimination of inflated legal fees and disputed loans, their explanations only account for about Sh4 billion. This leaves a staggering Sh35 billion gap that remains unexplained.
Dr. Nyakang’o has demanded that City Hall submit a full reconciliation report to the Auditor-General detailing how the adjustment was carried out.
Small Businesses Left Struggling
The revelation comes at a time when legitimate suppliers and contractors continue to wait months or even years for payment. Many small and medium-sized businesses have collapsed, with owners blacklisted by credit reference bureaus after defaulting on bank loans.
Contractors argue that while City Hall wipes off billions in “fake” bills, genuine suppliers remain unpaid — in some cases for over three years.
“Over 71 percent of Nairobi’s debts, amounting to Sh62.38 billion, have been pending for more than three years,” the report notes, warning of severe ripple effects across Kenya’s business sector.
Sakaja Government Under Fire
The County Executive Committee Member for Finance, Charles Kerich, defended the reconciliation by pointing to:
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Removal of Sh300 million in disputed loans,
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Scrapping of inflated legal fees,
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Payment of Sh1 billion in pensions,
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Realignment of liabilities dating back to the 1980s.
But critics say these measures do little to explain the sudden Sh39.8 billion reduction.
For Governor Johnson Sakaja, who came into office promising transparency and fiscal responsibility, this audit raises a credibility crisis. Opposition leaders and business lobbies are demanding a deeper probe into the alleged fake supplier bills.
A Pattern of Corruption at City Hall
This is not the first time financial scandals have rocked Nairobi County.
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In April 2025, the Ethics and Anti-Corruption Commission (EACC) revealed court filings showing how senior county officials paid Sh407 million to shadowy companies for supplies that were never delivered.
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Between 2016 and 2022, rogue county officers allegedly approved irregular payments to 14 unprequalified businesses, further exposing a culture of entrenched graft at City Hall.
National Impact of Nairobi’s Audit
The Nairobi audit has broader implications for Kenya’s 47 counties.
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The reduction in Nairobi’s pending bills caused overall county debt to suppliers to drop from Sh181.9 billion to Sh176.8 billion.
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Despite the decline, Nairobi still holds the highest unpaid bills nationwide, with Sh86.77 billion in arrears.
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Alarmingly, counties collectively added Sh48.9 billion in new pending bills between July 2024 and June 2025, despite receiving full Treasury disbursements.
This trend, according to Dr. Nyakang’o, reflects systemic weaknesses in financial reporting and management across devolved units.
What Next for Sakaja’s Administration?
The Controller of Budget has directed Nairobi County to provide a full reconciliation breakdown to the Auditor-General. Failure to do so could trigger investigations by oversight bodies such as the EACC and Senate County Public Accounts Committee.
Until clear explanations are given, the specter of fake supplier bills, ghost companies, and fraudulent payments will continue to hang over Governor Sakaja’s administration — undermining public trust at a time when Nairobi’s residents are demanding service delivery.
Conclusion
The disappearance of nearly Sh40 billion from Nairobi County’s pending bills has ignited one of the most serious financial scandals in the county’s history.
For suppliers, the unanswered questions are not just about accountability but survival. Many remain unpaid, even as the county books are quietly “cleaned up.”
The real test for Governor Sakaja lies ahead: whether he will confront systemic graft at City Hall or become yet another leader presiding over Nairobi’s never-ending cycle of financial scandals.