Nairobi — Nairobi County is teetering on the edge of financial paralysis, with shrinking budgets, exploding pending bills, and collapsing essential services, according to a new analysis by the Kenya Human Rights Commission (KHRC).

The findings appear in KHRC's report "The Economics of Repression" published on Wednesday, which warns that Nairobi is now a case study of how national fiscal decisions are eroding county governance and deepening urban inequality.

Nairobi's real health budget, the commission noted, has fallen from Sh8 billion to Sh7 billion despite a population exceeding 5.7 million.

The commission says this decline has left hospitals chronically underserved, with medicine shortages, delayed procurement, and patients routinely turned away due to lack of insurance or stockouts.

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KHRC further reveals that pending bills in Nairobi have ballooned to levels "300 times higher than the county's total expenditure," strangling service delivery and crippling suppliers.

Meanwhile, the wage bill consumes nearly half of the county's entire budget.

The commission also noted schools in informal settlements have been hit by delayed capitation from the central government, while small businesses -- already squeezed by higher taxes -- face delayed payments from the county and shrinking market activity.

KHRC noted Nairobi's unraveling reflects broader national problems: poor fiscal discipline, politically driven spending priorities, and a public finance system that prioritizes debt obligations over essential services.