[Kenya] CoB concern over government failure to remit Ksh 115B statutory payments

Kenya’s Controller of Budget (CoB) has expressed concern over Ksh115.57 billion in unpaid statutory deductions, which formed part of the national government’s pending bills as of March 2026, Kenyans.co.ke reports.

The issue could expose thousands of civil servants to significant loan risks.

According to the CoB, pending bills were Ksh465.87 billion overall. This includes Ksh271.16 billion in recurrent expenditure and Ksh194.71 billion in development expenditure across ministries, departments, and agencies.

A considerable share of the arrears reportedly relates to statutory deductions already withheld from employees’ salaries but not remitted to the relevant institutions.

These include Ksh40.21 billion in Personal Emoluments arrears, Ksh39.64 billion in NHIF deductions, Ksh26.50 billion in PAYE, and Ksh9.22 billion in SACCO deductions.

The CoB reportedly warned that failure to remit these funds as required raises serious payroll compliance and accountability concerns, since the money had already been deducted from workers.

"Accounting Officers should ensure the timely payment of statutory deductions, as failure to do so is likely to affect staff welfare and morale," its report read. 

Delays of this nature could undermine key employee-linked systems that rely on timely and consistent remittance of statutory deductions.

SACCOs, which rely on consistent remittance records to update members’ savings and determine borrowing capacity, may be left with incomplete contribution data, potentially affecting loan processing and members’ financial standing.

Unpaid PAYE deductions can lead to discrepancies between employees' salary deductions and official KRA tax records, creating a situation where workers appear to owe tax even though money has already been deducted from their pay.  

Such inconsistencies can reportedly complicate access to tax compliance documents such as clearance certificates, which are often required for loans, public tenders, or formal employment processes.  

The CoB noted that the unpaid statutory deductions form part of the wider Ksh465.87 billion in pending bills accumulated by the national government during the review period.

Source: Kenyans.co.ke

(Link and quote via original reporting)

Kenya’s Controller of Budget (CoB) has expressed concern over Ksh115.57 billion in unpaid statutory deductions, which formed part of the national government’s pending bills as of March 2026, Kenyans.co.ke reports.

The issue could expose thousands of civil servants to significant loan risks.

According to the CoB, pending bills were Ksh465.87 billion overall. This includes Ksh271.16 billion in recurrent expenditure and Ksh194.71 billion in development expenditure across ministries, departments, and agencies.

A considerable share of the arrears reportedly relates to statutory deductions already withheld from employees’ salaries but not remitted to the relevant institutions.

These include Ksh40.21 billion in Personal Emoluments arrears, Ksh39.64 billion in NHIF deductions, Ksh26.50 billion in PAYE, and Ksh9.22 billion in SACCO deductions.

The CoB reportedly warned that failure to remit these funds as required raises serious payroll compliance and accountability concerns, since the money had already been deducted from workers.

"Accounting Officers should ensure the timely payment of statutory deductions, as failure to do so is likely to affect staff welfare and morale," its report read. 

Delays of this nature could undermine key employee-linked systems that rely on timely and consistent remittance of statutory deductions.

SACCOs, which rely on consistent remittance records to update members’ savings and determine borrowing capacity, may be left with incomplete contribution data, potentially affecting loan processing and members’ financial standing.

Unpaid PAYE deductions can lead to discrepancies between employees' salary deductions and official KRA tax records, creating a situation where workers appear to owe tax even though money has already been deducted from their pay.  

Such inconsistencies can reportedly complicate access to tax compliance documents such as clearance certificates, which are often required for loans, public tenders, or formal employment processes.  

The CoB noted that the unpaid statutory deductions form part of the wider Ksh465.87 billion in pending bills accumulated by the national government during the review period.

Source: Kenyans.co.ke

(Link and quote via original reporting)