The Kenyan Cabinet, on October 9, 2026, approved Sh23.74 billion to settle 28,726 verified government bills. This decision covers verified bills for goods and services supplied to government institutions, with each claim valued at Sh50 million or below. The approval offers relief to suppliers and contractors who have waited years for payment.
The approved amount represents 98 per cent of the 29,257 claims recommended for settlement after the Pending Bills Verification Committee's review. However, the 29,257 claims recommended by the committee were valued at Sh155.34 billion, meaning the newly approved Sh23.74 billion represents only about 15 per cent of that value. The remaining higher-value claims are expected to be handled separately.
The government initiated the verification process to address the pending bills issue, which has been a longstanding problem. The verification committee received 115,617 claims valued at Sh664.8 billion. Following scrutiny, it recommended 29,257 claims worth Sh155.34 billion for settlement. The scale of the difference reflects how much of the submitted backlog did not receive a recommendation under the review.
A government pending bill is an unpaid obligation arising from goods supplied, work completed or services delivered to a public institution. Such bills can accumulate when agencies commit to expenditure but do not settle invoices within the expected period. Delayed payments can cause a chain reaction, affecting not only the suppliers but also their own employees, subcontractors, and creditors.
The National Treasury will oversee the implementation of the Cabinet decision. Micro, small, and medium-sized enterprises will be prioritized, particularly those owned by women, young people, and persons with disabilities. However, the Cabinet announcement did not specify a date when payments will begin or give individual suppliers a schedule.
Businesses should retain their contract documents, delivery notes, invoices, inspection and acceptance records, payment correspondence, and any reference number issued during verification. They should rely on official Treasury or procuring-entity communication to establish the status of their claim rather than pay intermediaries promising to accelerate settlement.
The settlement offers potential relief, but the wider figures show that Kenya's pending-bills problem is not limited to this payout. The government will need to explain how the remaining recommended claims will be handled, how claims that were not recommended may be challenged or clarified, and what measures will stop future arrears from building up.
Key points
- The Kenyan government has approved Sh23.74 billion to settle 28,726 verified bills.
- The approved amount represents 98 per cent of the recommended claims but only 15 per cent of the total value.
- Micro, small, and medium-sized enterprises, particularly those owned by women, young people, and persons with disabilities, will be prioritized for payment.
