Cabinet approves Sh23.74 billion payment for pending bills

Cabinet approves settlement of verified government pending bills of Sh50 million and below. [PCS]

Cabinet on Friday, October 9, approved the settlement of 28,726 verified Government pending bills worth Sh23.74 billion, paving the way for thousands of suppliers and contractors to receive payments for work and services delivered to the Government.

The approved claims are valued at Sh50 million and below, with some suppliers having waited for payment since 2005.

In a statement, the Government said the payments account for 98 per cent of the 29,257 claims recommended for settlement following a verification exercise.

The National Treasury will oversee implementation of the payments, with priority given to micro, small and medium enterprises, particularly those owned by women, young people and persons with disabilities.

The Government said the settlement would ease cash-flow pressures on businesses affected by delayed payments, help protect jobs and restore confidence among suppliers and contractors.

The approval follows a review by the Pending Bills Verification Committee, which received 115,617 claims valued at Sh664.8 billion.

After verification, the committee recommended settling 29,257 claims worth Sh155.34 billion.

However, the statement did not specify when the approved payments would begin or provide a payment schedule for individual suppliers.

Bills exceeding Sh50 million, on the other hand, the government says, will be settled progressively.