This archive report was first published on 24 December 2019.
President Uhuru Kenyatta has taken a decisive step to address the issue of pending bills in the government, ordering all Cabinet Secretaries and Principal Secretaries to stay in office until all outstanding payments are cleared.
This directive was issued during the last cabinet meeting of the year, as the government seeks to mitigate the negative impact of delayed payments on the economy.
Acting Treasury CS Ukur Yatani explained that the delay in payments has led to a deterioration of financial positions of businesses, resulting in a negative impact on the economy.
CS Yatani further stated that the government's actions towards Small and Medium-sized Enterprises (SMEs) have been unfair, leading to the closure of some companies.
He emphasized that the government will not relent in delaying payments until a formula is found to pay all those owed.
According to a special audit by the Office of the Auditor General as of June 30, 2018, out of a total of Ksh.88.98 billion in pending bills, Ksh.51.2 billion (58%) were reported as payable, while Ksh.37.7 billion (42%) lacked sufficient documentation to support services rendered or work done.
As of December 18, Ksh.28.57 billion of the eligible pending bills had been paid, leaving an outstanding balance of Ksh.22.71 billion.
Ministries, departments, and agencies have pending bills amounting to Ksh.58.2 billion, out of which Ksh.43.2 billion comprises historical bills undergoing audit and investigation.
The National Government has committed to paying the balance of Ksh.4.2 billion by January 15, 2020.
