This archive report was first published on 23 December 2019.
On December 23, 2019, Tony Watima wrote about the importance of giving public finance law a chance to work in addressing the issue of pending bills.
After the 2013 General Election, counties were on a frenzy, with contractors and suppliers securing contracts and tenders worth millions of shillings. This led to a situation where some individuals, who had no business experience or financial capacity, were awarded contracts and tenders worth hundreds of millions of shillings, but delivered little or nothing.
As a result, many contractors and suppliers were left unpaid, with some waiting for over seven years to receive payment. This has led to a situation where the public stands to lose billions of shillings due to pending bills.
According to the Controller of Budget, the accumulated pending bills as at June 30, 2018, were Sh108.41 billion. However, the figure dropped to Sh34 billion as at June 30, 2019, excluding five counties that had not submitted the status of their pending bills. Nairobi's pending bills alone are estimated to be above Sh8 billion, suggesting that the total accumulated pending bills for all counties could be around Sh50 billion.
The Public Finance Management Regulation should be allowed to take its course to avoid taxpayers losing billions of shillings due to pending bills. The regulation provides a framework for the management of public finances, including the settlement of pending bills. By allowing the regulation to take its course, counties can ensure that pending bills are settled in a transparent and accountable manner, thereby protecting the interests of taxpayers.
