Suppliers who are owed by the government up to Ksh 10 million will start receiving their payments after completion of an ongoing verification process of the stock of pending bills.
National Treasury Cabinet Secretary John Mbadi says the Pending Bills Verification Committee has recommended for settlement of over Ksh 206 billion out of Ksh 660 billion worth of pending bills.
Preliminary reports submitted to the national assembly’s liaison committee by the Pending Bills Verification Committee, queried pending bills worth Ksh 268 billion for lack of proper documentation.
Mbadi says the government will start settling amounts owed to suppliers with outstanding amount ranging between Ksh 1 million and Ksh 10 million. Mbandi says the cluster comprises of 70pc of pending bills and will inject the much needed capital to small and medium enterprises as well as finance suppliers and contractors continue to offer service delivery and support job retention.
Stanbic Bank believes payment of pending bills will help reduce the stock of non performing loans by banks in Kenya.
Mbadi says energy, infrastructure, ICT, Health, education and public administration, international relations, agriculture and national security are among sectors with highest outstanding pending bills that have been cleared for payment.
