In a major reprieve to businesses, the Pending Bills Verification Committee has approved payment of Sh255 billion, part of the Sh606 billion owed to suppliers and contractors over the years.
According to Dr Chris Kiptoo, Principal Secretary for National Treasury and Economic Planning, Sh80 billion within the road sector has already been cleared, with the remaining Sh175 billion set for payment in the coming months.
Dr. Kiptoo acknowledged the difficulties faced by business entities due to delays in clearing accumulated pending bills, noting that these delays were linked to fiscal deficits experienced by the government.
He assured suppliers that all approved pending bills will be paid within the next two fiscal years, and the Treasury will seek Cabinet approval for the remaining Sh175 billion.
The government formed the committee to scrutinise and verify pending bills accumulated between July 1, 2005, and June 30, 2022, following widespread outcry from suppliers over non-payment.
Addressing Members of Parliament in Naivasha during the ongoing 2026 Legislative Retreat, Dr. Kiptoo explained that the government has been operating under a shrinking fiscal space with reduced revenues and tax collections over the years.
Out of the projected Sh4.6 trillion budget for 2026/2027, Sh1.8 trillion is earmarked for servicing interest on loans, representing 48 percent of collected revenues of Sh3.3 trillion.
From the Sh2.8 trillion allocated for ministerial budgets, the education sector will receive the largest share of Sh767 billion, followed by energy, infrastructure, and ICT at Sh595 billion, and national security at Sh300 billion.
Dr. Kiptoo warned that the current public debt, which reached Sh12 trillion by September 30, 2025, is unsustainable and is reducing the budget available for key development projects.
He emphasised the need to manage debt through tax administration and policy reforms, prioritising incomplete projects, reducing non-essential expenditure, and adopting e-procurement for the Sh2.5 trillion procurement kitty.
Additional reforms are underway within state corporations, including mergers, restructuring, and dissolutions, expected to be completed by year-end, aimed at improving efficiency, saving budget allocations, and creating fiscal space.
The ongoing privatisation of government-owned entities, including Kenya Pipeline, will anchor proceeds on the established Infrastructure Fund, providing long-term financial capacity for national projects.
Dr. Kiptoo also highlighted improved economic parameters, including rising exports, a stable shilling, reserves of USD 12 billion (Sh1.5 trillion), and diaspora remittances of USD 5.04 billion (Sh649.5 billion).
National Assembly Budget Committee Chair Kimani Kuria defended the planned sale of 15 per cent of government-owned Safaricom shares, projected to net Sh244 billion for infrastructure funding.
Leader of the Majority Kimani Ichung’wa attributed the pending bill crisis to a cartel within Treasury and county offices, noting that senior county officers had withheld released funds to extort suppliers.
He challenged opponents of the Safaricom share sale to propose alternative deals.
Nyandarua Women Representative Faith Gitau welcomed the government’s move to pay verified pending bills, noting that years of non-payment had crippled businesses.
She urged faster clearance to encourage youths, women, and people with disabilities to transact with the government, stimulating economic activity.
By Erastus Gichohi
