Suppliers’ woe as Ouko team renders Sh402bn pending bills unpayable
The Kenyan government has rejected over Sh400 billion in pending bills following a verification exercise, leaving thousands of suppliers in financial uncertainty. While Sh235.6 billion was approved for payment, the remaining claims were deemed unverified, impacting businesses that have already completed government contracts.
Why it matters
This highlights significant fiscal management challenges and the potential for economic instability among small and medium enterprises reliant on government contracts.
Treasury says pending bills verification complete, with hordes of suppliers claims deemed as unverified. Thousands of suppliers and contractors seeking payment for work done for the government face uncertainty after a verification exercise recommended only Sh235.6 billion of pending bills for settlement.
The National Treasury says the Pending Bills Verification Committee analysed 91,911 claims worth Sh637.6 billion, but recommended 29,885 claims for payment.
The CS John Mbadi-led ministry said the review has since been concluded.
“Following the verification exercise, 29,885 claims amounting to Sh235.6 billion were recommended for settlement,” Treasury says.
This leaves about Sh402 billion in claims that were not recommended for settlement, raising questions about the fate of businesses that say they supplied goods or services to government agencies.
Some have shut down businesses, others have auctioneers at their doors, while many continue to service bank loans for projects completed years ago.
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