Cabinet meeting at State House on October 9 /PCSThe Cabinet has approved the payment of Sh23.74 billion in verified government pending bills owed to suppliers and contractors, including some who have waited for payment since 2005.
The settlement covers 28,726 claims worth Sh50 million and below, representing 98 per cent of the 29,257 claims recommended for payment following a government verification exercise.
The decision is expected to provide relief to thousands of businesses that have struggled with delayed payments for goods and services supplied to government agencies.
“The payment of 28,726 verified bills totalling Sh23.74 billion will bring long-awaited relief to thousands of suppliers and contractors, some owed money since 2005,” the Cabinet dispatch stated.
The approval follows a review by the Pending Bills Verification Committee, which received 115,617 claims valued at Sh664.8 billion.
After examining the submissions, the committee recommended 29,257 claims worth Sh155.34 billion for settlement, with the latest approval targeting claims of Sh50 million and below.
The National Treasury will oversee the implementation of the decision and coordinate the release of funds to eligible suppliers and contractors.
The government says the payments will ease cash-flow pressures on businesses, protect jobs and restore confidence among firms that depend on public contracts.
Priority will be given to micro, small and medium enterprises (MSMEs), particularly those owned by women, young people and persons with disabilities.
“The National Treasury will oversee implementation, releasing much-needed funds to businesses struggling with delayed Government payments, easing cash-flow pressures, protecting jobs and restoring confidence among suppliers and contractors,” the dispatch said.
Pending bills have remained a concern for businesses supplying goods and services to government entities, with delayed payments affecting their ability to pay workers, settle loans and meet operational costs.
For small businesses, prolonged delays can also limit their capacity to secure new contracts and sustain operations as they wait for money already earned.
The Cabinet said claims exceeding Sh50 million that have been verified would be settled progressively, indicating that larger suppliers and contractors will have to await subsequent payments.
The latest approval comes after the government cleared pending bills worth more than Sh80 billion in the roads sector.
The government has presented the payments as part of wider efforts to address longstanding financial obligations to businesses and improve the management of public expenditure.
However, the latest settlement covers only a portion of the claims submitted to the verification committee, with the fate and timing of payments for claims not recommended for settlement remaining dependent on the verification process and applicable government procedures.
The National Treasury is expected to oversee the disbursement of the approved funds to ensure that eligible suppliers and contractors receive payment.
