Cabinet Approves Sh23.74 Billion Payment to Suppliers With Bills Below Sh50 Million
The Cabinet has approved the settlement of verified government pending bills worth Sh50 million and below, paving the way for payments to thousands of suppliers and contractors.
In a dispatch following a Cabinet meeting chaired by President William Ruto at State House, the government said 28,726 verified bills totalling Sh23.74 billion would be paid, representing 98 per cent of the 29,257 claims recommended for settlement.
The payments are expected to provide relief to businesses, some of which have been waiting for government payments since 2005.
The decision follows a review by the Pending Bills Verification Committee, which received 115,617 claims valued at Sh664.8 billion.
After verification, the committee recommended 29,257 claims worth Sh155.34 billion for settlement.
The National Treasury will oversee the implementation of the decision, with the payments expected to ease cash-flow pressures for businesses, protect jobs and restore confidence among suppliers and contractors.
“Priority will be given to micro, small and medium enterprises, particularly those owned by women, young people and persons with disabilities,” the Cabinet dispatch stated.
The government said verified bills exceeding Sh50 million would be settled progressively, ensuring that larger claims are also addressed.
The latest decision follows the earlier clearance of pending bills worth more than Sh80 billion in the roads sector, as the government moves to address long-standing payment obligations.
