The Kenyan Cabinet has approved the settlement of verified government pending bills worth Ksh.23.74 billion for claims of Ksh.50 million and below. This move is expected to provide relief to thousands of suppliers and contractors owed money for years. The approval covers 28,726 verified bills, representing 98 per cent of the 29,257 claims recommended for settlement following a review by the Pending Bills Verification Committee.
The Pending Bills Verification Committee received 115,617 claims valued at Ksh.664.8 billion. Following the verification exercise, it recommended 29,257 claims worth Ksh.155.34 billion for settlement. Some of the affected suppliers and contractors have reportedly been waiting for payment since 2005. The National Treasury will oversee the implementation of the settlement, releasing much-needed funds to businesses struggling with delayed government payments.
The Cabinet's decision follows the earlier clearance of pending bills worth more than Ksh.80 billion in the roads sector, as the government moves to address longstanding payment obligations. The government has been working to settle its debts to suppliers and contractors, who have been facing cash-flow pressures due to delayed payments. The settlement of these bills is expected to ease cash-flow pressures, protect jobs, and restore confidence among suppliers and contractors.
In addition to the settlement of pending bills, the Cabinet endorsed a hospital infrastructure programme aimed at expanding access to specialised treatment, strengthening referral services, and accelerating the implementation of Universal Health Coverage (UHC). The programme includes the construction of a new 2,000-bed Moi Teaching and Referral Hospital and a 1,000-bed Level Six hospital in Mombasa. This will increase hospital capacity and bring specialised healthcare services closer to communities across the country.
The hospital infrastructure programme will also involve the expansion of 13 Level Five hospitals by an additional 300 beds each in various counties. These counties include Mandera, Marsabit, Turkana, Kilifi, Embu, Nakuru, Laikipia, Migori, Nyamira, Baringo, Bomet, Narok, and Kisii. The planned investments are intended to ease congestion at referral facilities and improve healthcare access and delivery.
The Cabinet also endorsed a separate Ksh.8 billion healthcare programme in partnership with France to establish and equip specialised head and neck surgical units at Kenyatta National Hospital (KNH), Moi Teaching and Referral Hospital (MTR), and the University of Nairobi Dental Hospital. This initiative will strengthen cancer treatment services while supporting the training of 5,000 community health workers.
The settlement of verified pending bills exceeding Ksh.50 million has also been approved by the Cabinet, signalling that larger claims will be addressed in subsequent phases. The government has been working to address its payment obligations, and the settlement of these bills is expected to have a positive impact on the economy and the businesses that have been affected.
Key points
- The Kenyan Cabinet has approved the settlement of verified pending bills worth Ksh.23.74 billion for claims of Ksh.50 million and below.
- The settlement of pending bills is expected to ease cash-flow pressures, protect jobs, and restore confidence among suppliers and contractors.
- The government has also endorsed a hospital infrastructure programme and a healthcare programme in partnership with France to improve healthcare access and delivery.
