The government has approved payment of Sh23.74 billion in verified pending bills owed to suppliers and contractors, including businesses that have waited for payment since 2005.
The Cabinet decision covers verified claims of Sh50 million and below.
The payments will settle 28,726 bills, representing 98 per cent of the 29,257 claims recommended for settlement, according to a Cabinet statement issued on Friday.
The Pending Bills Verification Committee reviewed 115,617 claims worth Sh664.8 billion.
It recommended 29,257 claims valued at Sh155.34 billion for payment.
The remaining verified bills above Sh50 million will be settled progressively, the government said.
The National Treasury will oversee implementation.
The government said priority would be given to micro, small and medium-sized businesses, particularly those owned by women, young people and persons with disabilities.
The payments are expected to ease cash-flow pressures for suppliers and contractors who have struggled with delayed government payments.
The Cabinet statement said the government had earlier cleared more than Sh80 billion in pending bills in the roads sector.
