Suppliers owed hundreds of billions of shillings by the government will be paid before the end of the year, President William Ruto has announced.
Ruto said Sh230 billion of debts owed to suppliers have been verified by the Pending Bills Verification Committee.
Of these, the government will pay Sh150 billion.
He pointed out that 90 per cent of the funds will be paid to micro, small and medium enterprises.
Speaking when he hosted the leadership of the Kenya National Chamber of Commerce and Industry from across the country at State House Nairobi on Friday, President Ruto regretted that pending bills were hurting businesses, saying the government has moved procurement to a digital platform beginning April 1, 2025, to avert situations where entities procure for goods and services without the requisite budgets. “Going forward, bidding and awarding government tenders will be done online,” he said.
The President called for a partnership between the private and public sectors in accelerating development, saying the government is working with all partners to nurture, build and support local enterprises.
“This will enhance enterprise profitability and the country’s progress,” said President Ruto.
At the same time, the President urged the Kenya National Chamber of Commerce and Industry members to facilitate savings so that more small firms can use them instead of seeking expensive loans for investment.
“I want to encourage the private sector to facilitate savings to use it as an alternative when investing,” he added.
He noted that the Sh300 billion used in building affordable housing, fresh produce markets and institutional housing has not been borrowed.
President Ruto reiterated that his administration was moving away from burdening citizens with borrowed funds for development, saying it is resorting to different mechanisms of funding development initiatives.
“It’s encouraging that all the companies working in the Affordable Housing Project are Kenyan-owned companies,” he said.
The President also urged the Chamber of Commerce and Industry to work with the government over the management of sugar mills, saying the government was concluding the leasing of all its owned factories.
He said the government has no business running the sugar mills, noting that they can well be managed by the private sector.
President of the National Chamber of Commerce and Industry Erick Rutto praised the government for introducing a zero-rated Value Added Tax on tea packaging materials to encourage value addition and boost exports.
He said the move aims to reduce costs for tea packers, making them more competitive in the global market.
“I want to thank the government for introducing zero-rated Value Added Tax on tea packaging materials. This will encourage farmers to produce more for export, ” Dr Rutto said.
Trade, Investment and Industry Cabinet Secretary Lee Kinyanjui said his ministry was working closely with the National Chamber of Commerce and Industry to woo investors into the country.
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