Kenya’s President William Ruto has pledged to pay Ksh150 billion to suppliers owed by the government by December this year.
Speaking during a meeting with leaders from the Kenya National Chamber of Commerce and Industry at State House, Nairobi on Friday, the President stated that the Pending Bills Verification Committee has verified KSh 230 billion of unpaid supplier debts. About 90% of the funds will be paid to micro, small, and medium enterprises.
He acknowledged that the pending bills are hurting business across the country, and announced the government’s move to digitalize the procurement process beginning April 1, 2025. The digitized procurement is designed to prevent entities from procuring goods and services without the necessary budget allocations.
“Going forward, bidding and awarding government tenders will be done online,” he said.
The President advocated collaboration between the private and public sectors in accelerating development, noting the government’s commitment to working with all partners to nurture, build, and support local enterprises.
Additionally, President Ruto called on the Kenya National Chamber of Commerce and Industry members to promote savings, enabling small firms to use their capital rather than costly loans for investment.
“I want to encourage the private sector to facilitate savings and use them as an alternative when investing,” he said.
The issue of pending bills in Kenya poses a significant financial challenge that impacts both the national and county governments, as well as the suppliers and contractors who are owed money.
The government set up the verification committee in September 2023 to analyze and deal with the ever-growing pending bills owed to government suppliers.
By March 2025, the Pending Bills Verification had received a total of Ksh 664 billion from individuals, corporate bodies, and companies. However, the committee rejected some of the unpaid bills due to a lack of documentation.
The government’s commitment to clear the supplier debts by December 2025 is a significant step towards alleviating the financial burden on businesses and improving the overall economic environment.
