National government begins audit of bill arrears



All pending arrears at the county and national level will be vetted in an authentication exercise spearheaded by the National Treasury and the County governments.

National Treasury Cabinet Secretary Henry Rotich says all authenticated debts will be settled within 30 days. It is estimated that the two level governments owe suppliers close to 500 billion shillings in pending bills.

Suppliers and commercial banks have for a long time decried delays by county and national governments to settle their arrears running into billions of shillings.

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The delays have been occasioned by lack of funds and proper documentation as well as the ambiguity of the 2017 elections that ushered in new county managers.

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In March this year, the council of governors halted the payment of bills by counties pending the outcome of an audit.

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Rotich says an audit of all bill arrears that are less than one year old in an exercise that will take 60 days. Rotich says once the claims have been verified, they shall be settled within 30 days.

It is estimated that the two governments owe suppliers and contractors more than Ksh 500 billion dating back to more than 5 years.

Rotich has told the media that treasury is engaging the National Assembly and the Federation of Kenya Employers on the deduction of employees’ contributions towards the Kenya Mortgage Fund.

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He spoke during the signing of a Ksh 60 billion funding agreement with the French Development Agency.

The funds will go towards the implementation of projects in the energy, water and transport sectors as well as in support of the Kenyan government’s public finance management.


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