The government will settle Sh149 billion owed to suppliers at the start of the next financial year, National Treasury Principal Secretary Dr. Chris Kiptoo has announced. This payment is part of the Sh206 billion in pending bills that have been cleared by the Pending Bills Verification Committee.
Dr. Kiptoo revealed that the committee initially flagged Sh264 billion worth of pending bills, citing a lack of proper documentation. However, after a thorough verification process, Sh206 billion was cleared, with Sh149 billion slated for payment beginning July 2025.
To curb the recurrence of such large pending bills, Dr. Kiptoo said that all bidding and awarding of government tenders will be conducted online starting July.
This move aims to enhance transparency and accountability in public procurement.In a broader effort to boost private sector liquidity, the Treasury also plans to release funds for tax refunds.
Dr. Kiptoo further stated that the government is considering reducing coupon rates on government securities. This strategy is intended to encourage banks to increase lending to businesses.
The Treasury PS emphasized the government’s commitment to creating a predictable and investor-friendly regulatory environment, which he believes is crucial for sustained economic growth and private sector confidence.
