The Kenyan government has taken a significant step towards settling its outstanding debts to suppliers and contractors. The Cabinet has approved the payment of pending bills worth Ksh 23.74 billion, which represents 98% of the 29,257 claims verified and recommended for settlement by the Pending Bills Verification Committee. This move is expected to ease cash-flow pressures and restore confidence among businesses that have been struggling with delayed government payments.
According to the Committee's comprehensive review, out of 115,617 claims worth Ksh 664.8 billion received, only 29,257 claims valued at Ksh 155.34 billion were verified and recommended for settlement. The National Treasury will oversee the implementation of the payment process, which is expected to release much-needed funds to businesses. This will not only help protect jobs but also promote economic growth.
Suppliers and contractors who are owed Ksh 50 million and below will begin receiving their payments immediately. The government also plans to verify and settle claims exceeding Ksh 50 million progressively. This move is part of the government's efforts to support micro, small, and medium enterprises, particularly those owned by women, young people, and persons with disabilities.
The government has already made significant progress in clearing pending bills claims in the roads sector. Following the securitization of the Road Maintenance Levy Fund, the government has cleared claims worth more than Ksh 80 billion. This has helped to improve the financial stability of contractors and suppliers in the sector.
In addition to the payment of pending bills, the Cabinet has approved the implementation of three strategic road corridors under the Roads for Rural Economic Development Programme. The projects, which include the 253km South Rift–Lake Region Gateway Corridor, the 256km Great Highlands Connectivity Corridor, and the approximately 400km Lake Victoria Ring Road, are expected to open up rural economies and improve market access.
The roads will link agricultural production areas, fishing communities, and trading centers to wider markets, cutting transport costs, reducing travel times, and improving access to economic opportunities. This is part of the government's efforts to develop rural economies and promote economic growth. Furthermore, Ksh 12.83 billion in additional financing has been approved to aid the completion of Thwake Multipurpose Dam.
The Thwake Multipurpose Dam is expected to supply 150,000 cubic meters of water daily to about 1.3 million people and support irrigation and future hydropower generation. The project will strengthen water security, agricultural production, and economic development in Makueni and Kitui counties, including Wote town and surrounding areas, as well as Konza Technopolis.
Key points
- The Kenyan government has approved the payment of pending bills worth Ksh 23.74 billion to suppliers and contractors.
- The government plans to verify and settle claims exceeding Ksh 50 million progressively.
- The Cabinet has also approved the implementation of three strategic road corridors under the Roads for Rural Economic Development Programme.
