This archive report was first published on 21 November 2019.
As of 1st December, the Treasury will stop releasing funds to government ministries and parastatals that have failed to pay their suppliers, who are owed an estimated Ksh 150 billion.
The move comes after entities that have done business with the National and County governments decried the delayed payment for services they delivered, citing 'mismanagement and corruption' as the cause.
Treasury Cabinet Secretary Ukur Yattani acknowledged the issue, stating that the delays have led to the deterioration of financial positions of businesses, particularly small and medium enterprises.
Yattani also revealed that he released funds in June specifically for the purpose of paying the firms, but 15 counties and 53 ministries and departments of government are yet to make payments.
The announcement comes days after President Kenyatta expressed concern over why Kenyans were broke, sparking anger among many who felt the President was insensitive and oblivious to the country's affairs.
