The Cabinet has approved the settlement of verified government pending bills worth KSh50 million and below, paving the way for payments totalling KSh23.74 billion to thousands of suppliers and contractors.
The payments will cover 28,726 verified bills, representing 98% of the 29,257 claims recommended for settlement, offering relief to businesses, some of which have been waiting for payment since 2005.
The decision follows a comprehensive review by the Pending Bills Verification Committee, which received 115,617 claims valued at KSh664.8 billion. After verification, 29,257 claims worth KSh155.34 billion were recommended for payment.
The National Treasury will oversee the implementation of the decision, releasing funds to businesses facing financial pressure due to delayed government payments. The move is expected to ease cash-flow challenges, protect jobs and restore confidence among suppliers and contractors.
Priority will be given to micro, small and medium-sized enterprises, particularly those owned by women, young people and persons with disabilities.
The government said pending bills exceeding KSh50 million would be settled progressively, ensuring larger claims are also addressed.
The latest decision follows the earlier clearance of pending bills worth more than KSh80 billion in the roads sector, as the government steps up efforts to settle longstanding payment obligations.