A financial crisis is brewing across Kenya’s devolved units, with unpaid electricity bills threatening to cripple essential services. County governments, already grappling with mismanagement and revenue shortfalls, owe billions to the Kenya Power and Lighting Company (KPLC). This debt, if left unchecked, could disrupt healthcare services, water supply systems, and public infrastructure, plunging citizens into darkness—both literally and figuratively. The standoff between Nairobi County and KPLC is just the tip of the iceberg, a symptom of a nationwide governance failure that has left counties struggling to meet even their most basic financial obligations.

In a move signalling deep concern over the fiscal discipline of county governments, the Parliamentary Budget Office (PBO) has proposed ring-fencing electricity funds from exchequer transfers. Under this proposal, county allocations from the national government would have a portion automatically set aside for electricity payments before any other expenditures are made. On the surface, this measure appears practical—ensuring that counties prioritise power bills and prevent service disruptions. However, beneath it lies a harsh reality: county governments are seemingly becoming so unreliable in financial management that the national government is being forced to impose controls on their spending.

This crisis exposes glaring weaknesses in county financial governance. Allegations of corruption, misallocation of funds, and poor revenue collection strategies have left counties perpetually cash-strapped. If public funds were managed with transparency and accountability, such drastic interventions would be unnecessary. The fact that county governments now require enforced budgeting to settle their electricity debts speaks volumes about the dysfunction at the heart of devolved governance. Instead of prioritising essential services, many counties have fallen into a pattern of wasteful expenditure and political manoeuvring, leaving residents to bear the consequences of poor leadership.

But the blame does not rest solely on county administrations. KPLC, as the country’s sole electricity provider, has long been accused of inflated billing, inefficiencies, and poor customer service. Nairobi County’s dispute with KPLC over billing accuracy is not unique—many consumers, from households to businesses, have raised similar concerns. If counties are expected to clear their debts as a priority, KPLC needs to also be held accountable for transparent and fair billing practices. Otherwise, the ring-fencing of electricity funds will only serve to entrench a monopolistic entity that has often operated without sufficient oversight.

There are also larger policy implications to consider. The PBO’s proposal, if implemented, would set a precedent for how county funds are managed. If electricity payments can be ring-fenced, what stops the same from happening with water bills, supplier payments, or even salaries? While the need for financial discipline is undeniable, excessive control from the national government risks undermining the spirit of devolution. Counties were meant to be financially autonomous, yet their continued fiscal indiscipline is making a case for tighter national oversight—a development that could have far-reaching political consequences.

Ultimately, this crisis demands more than quick fixes. County governments must take responsibility for their financial health by improving revenue collection, eliminating waste, and prioritising service delivery. Service providers, like KPLC, in turn, must reform their approach to service delivery as a way of restoring public confidence. National government oversight should not replace county accountability but rather serve as a catalyst for reform.

If left unresolved, the electricity debt crisis will not just be about unpaid bills—it will be a damning indictment of the failure of devolution to deliver on its promises. County governments must act decisively or risk proving their critics right—that financial autonomy without accountability is a recipe for disaster.