Nairobi — Unpaid government bills stood at Sh630.6 billion as of September 30, 2023, as the state struggles to clear bills owed toke private and government businesses.
It comprises Sh509.4 billion (73.4 percent) and Sh121.2 billion (26.1 percent) for the state corporations (SCs) and ministries, state departments, and other government agencies.
SCs pending bills include payments to contractors, projects, suppliers, unremitted statutory and other deductions, pension arrears for the Local Authorities Pension Trust, and others.
National Treasury adds in the 2023/24 Quarterly Economic and Budgetary Review for Q1 that the highest SC pending bills belong to contractors, projects, and suppliers.
“Ministries/State Departments and other government Agencies pending bills constitutes mainly of historical pending bills,” Treasuruy says in the report.
“The National Government policy on clearance of pending bills continues to be in force.”
Early this month, President William Ruto announced that the state would pay genuine pending bills first.
“All MDAs are therefore, expected to continue with prioritization of payment of the pending bills by settling them as a first charge in the current financial year budget in line with the Treasury guidelines for implementation of the financial year 2023/24 and the medium term budget, Treasury Circular No. 7/2023,” Treasury adds in the Q1 data.