NAIROBI, Kenya – The government has approved the payment of Sh255 billion in long-outstanding pending bills, marking one of the most significant efforts yet to ease cash-flow pressure on contractors and suppliers who have waited years for settlement.
National Treasury and Economic Planning Principal Secretary Dr Chris Kiptoo announced the move during the 2026 Legislative Retreat in Naivasha, saying the payments follow a detailed verification process aimed at restoring credibility and discipline in public spending.
The approved amount forms part of Sh606 billion in pending bills that were reviewed by the Pending Bills Verification Committee, which was established to weed out disputed or inflated claims and ensure only legitimate obligations are honoured.
According to Dr Kiptoo, Sh80 billion linked to the road sector has already been paid, while the remaining Sh175 billion will be released progressively over the coming months.
He assured suppliers that all verified claims will be cleared within the next two financial years, with Cabinet approval to be sought for any balances that extend beyond current budget ceilings.
Pending bills have dogged government operations for nearly two decades, with contractors reporting delayed payments between July 2005 and June 2022.
Businesses have repeatedly warned that the backlog disrupted operations, strained cash flow, and eroded confidence in government procurement systems.
Dr Kiptoo attributed the prolonged delays to budget deficits, weak revenue growth, and falling tax collections, which constrained funds available for settling obligations.
He said clearing the bills is not just a financial exercise but a deliberate effort to rebuild trust between the State and the private sector.
However, fiscal pressures remain intense. Under the Sh4.6 trillion 2026/2027 budget, the government has allocated Sh1.8 trillion—about 48 per cent of projected revenue—to interest payments, sharply limiting funds for development spending.
Of the Sh2.8 trillion allocated to ministries, the education sector will take the largest share at Sh767 billion, followed by energy, infrastructure and ICT at Sh595 billion, and national security at Sh300 billion.
Public debt, which stood at Sh12 trillion as of September 30, 2025, continues to weigh heavily on government finances, Dr Kiptoo warned.
To prevent a recurrence of pending bills, the Treasury is rolling out reforms including stronger tax collection, prioritisation of stalled projects, cuts to non-essential expenditure, and the introduction of e-procurement for the Sh2.5 trillion annual procurement budget.
