The National Treasury has announced plans to clear Ksh 149 billion in pending bills beginning July 2025, as part of a wider effort to address delayed payments and improve liquidity in the economy. The announcement was made by Treasury Principal Secretary Dr. Chris Kiptoo, who revealed that the amount is part of the Ksh 206 billion approved for payment by the Pending Bills Verification Committee.
Dr. Kiptoo noted that the committee had reviewed claims amounting to Ksh 470 billion. Out of this, Ksh 264 billion was flagged for lacking proper documentation, raising concerns over the authenticity of some of the claims. The verification process, he said, was aimed at ensuring public funds are used transparently and efficiently, and that only legitimate claims are settled.
To prevent the recurrence of such massive pending bills, Dr. Kiptoo announced that from the next financial year, the bidding and awarding of government tenders will be conducted online. This move is expected to enhance transparency and accountability in procurement processes while minimizing delays in contract execution and payment.
In a bid to further improve liquidity within the private sector, the Treasury has also committed to expediting tax refunds. “We are keen on supporting the private sector by ensuring that tax refunds are released promptly. This will boost business operations and stimulate economic growth,” said Kiptoo.
Additionally, the Treasury plans to reduce coupon rates on government securities in an effort to enhance liquidity. By lowering returns on government papers, the aim is to discourage excessive investment in government bonds and instead encourage banks to channel more funds into private sector lending.
These measures come as the government grapples with mounting concerns over delayed payments to contractors and suppliers, which have adversely impacted businesses, particularly small and medium enterprises (SMEs). By addressing the pending bills and introducing structural reforms in procurement and fiscal policy, the Treasury hopes to restore confidence in public financial management and stimulate economic recovery.
The clearance of verified pending bills will begin with priority given to contractors and suppliers who have waited the longest and whose services are essential to ongoing development projects.
