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The National Treasury has ordered accounting officers of all public entities to ensure they honour their contractual obligations in order to cut accumulation of pending bills.
National Treasury and Economic Planning Cabinet Secretary John Mbadi says accounting officers should ensure payment for ongoing commitment for procured goods and services and not award new contracts.
“Accounting Officers are therefore required to service the continuing contractual obligations as per the contract agreement to avoid the accumulation of expenditure arrears,” said Mbadi.
This comes as the government works on verifying pending bills for the purpose of paying suppliers.
According to Treasury, the Pending Bills Verification Committee which was appointed in September 2023 has so far cleared Ksh 229 billion for settlement out of Ksh 522.9 billion bills which have been verified.
Accounting officers have also been directed to ensure bank account reconciliations are done monthly for each of the bank accounts held as per the Public Finance Management Act, 2015.
“The bank reconciliation statements should be submitted to the National Treasury not later than the 10th of the subsequent month, with a copy to the Auditor General,” he stated.
Additionally, treasury has ordered all standing and temporary imprests to be surrendered before June 30, 2025 and un-surrendered imprest to be recovered in full.
