Cabinet Approves KSh23.74 Billion Payment to Suppliers Owed Since 2005

The Cabinet, chaired by President William Ruto at State House, gave the green light to disburse KSh23.74 billion to settle verified government pending bills of KSh50 million and below.

The approved amount covers 28,726 bills, which represent 98 percent of the 29,257 claims the Pending Bills Verification Committee recommended for payment after reviewing 115,617 submissions valued at KSh664.8 billion. The committee had earlier recommended settlement of claims worth KSh155.34 billion.

The National Treasury will manage the rollout of funds and ensure that eligible suppliers and contractors receive payment. “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.

The decision is aimed at easing cash-flow strains for thousands of businesses, some of which have awaited payment since 2005. “The payment of 28,726 verified bills totalling KSh23.74 billion will bring long-awaited relief to thousands of suppliers and contractors, some owed money since 2005,” the Cabinet statement noted.

Priority will be given to micro, small and medium enterprises, especially those owned by women, young people and persons with disabilities, according to the dispatch: “Priority will be given to micro, small and medium enterprises, particularly those owned by women, young people and persons with disabilities.” Larger claims exceeding KSh50 million will be settled in later phases.

The latest settlement follows an earlier clearance of pending bills exceeding KSh80 billion in the roads sector, part of the government’s broader effort to address longstanding payment obligations and improve public expenditure management.