This archive report was first published on 17 November 2019.
On November 17, 2019, the Kenyan government issued a directive to freeze all development projects due to a cash crunch. The directive, signed by Head of Public Service Joseph Kinyua, also instructed state agencies to remit their dues to the Kenya Revenue Authority (KRA).
The move is aimed at helping the KRA shore up its collections and alleviate the cash crunch. The government has also asked state agencies to operate with prudence and financial discipline.
According to the directive, the Treasury is expected to submit a report on the amounts remitted by state corporations and agencies. The report is to indicate which agencies have complied with the directive and which have not.
State agencies have been given two weeks to clear all their pending bills. The directive also orders the immediate withdrawal of any court cases between state agencies relating to disputes arising from projects or programmes funded through government resources.
Head of Public Service Joseph Kinyua said the decision is informed by the need to expedite the implementation and accelerate the delivery of the country's vision. He added that the administration is conducting a budget alignment exercise to provide the appropriate fiscal framework to guide the country's sustainable development agenda.
Kenya Airports Authority (KAA) has already remitted Sh12 billion, while the Kenya Pipeline Company (KPC) has returned Sh5 billion. The Kenya Ports Authority (KPA) has also handed over Sh18.7 billion as special dividends to the exchequer.
