This archive report was first published on 1 November 2019.
As of the end of the 2017/2018 financial year, Kenya's 47 counties had accumulated pending bills worth 108.41 billion shillings, up from 35.84 billion shillings the previous year.
Central Bank of Kenya Governor Dr. Patrick Njoroge has urged county governments to fast-track payment of suppliers and contractors to reduce the country's non-performing loans.
Dr. Njoroge warned that the non-performing loans might cripple the SME and financial sectors due to an increase in non-performing loans.
During a roundtable meeting between President Uhuru Kenyatta and Kenya Private Sector Alliance representatives in June this year, the President agreed to the fast-track payment of all pending bills, proposing suppliers to be paid within 60 days after delivery.
However, counties are still holding out on suppliers and contractors, and it remains to be seen if private sector proposals for an introduction of interest on all pending bills and hefty fines for non-compliance will be adopted in the Finance Bill.
The Finance Bill also proposes action against government officials diverting money meant to pay suppliers.
