The Kenyan government is intensifying efforts to tackle the long-standing issue of pending bills, which currently stand at approximately Ksh663 billion. National Treasury Cabinet Secretary (CS) John Mbadi has identified inefficiencies in the budgeting process as the primary contributor to this massive backlog of unpaid bills.
During a recent stakeholder meeting chaired by Prime Cabinet Secretary Musalia Mudavadi, Mbadi emphasized that the solution to the pending bills lies in improving the budgeting process rather than just focusing on timely payments. He stated, “To deal with pending bills, we first need to deal with the budget. It’s not about prompt payment. We have to deal with pending bills at the budgeting stage. We have to be realistic in our budgets. Counties must stop over-projecting own-source revenue. National government must stop over-projecting revenue collection.”
Mbadi explained that many of the unpaid bills result from unrealistic revenue projections and inflated budget figures. As a result, both the national and county governments have faced difficulties in meeting their financial commitments, particularly in the road sector, which constitutes a significant portion of the pending bills.
From a preliminary analysis, the total amount of pending bills is expected to decrease to Ksh450 billion after verification. However, Ksh151 billion from the previous financial year was carried over, meaning the actual backlog remains above Ksh600 billion.
In response to this growing issue, Mbadi disclosed that he would propose the creation of a system similar to a stimulus package, designed to gradually settle the pending bills over time. This initiative would aim to bring greater accountability and efficiency to the country’s financial management.
By focusing on a more realistic approach to budgeting and ensuring that both revenue projections and spending are aligned, the government hopes to address the issue of pending bills and prevent future financial backlogs. The proposed measures are expected to bring relief to suppliers, contractors, and service providers who have long been waiting for payment.
