Some Kisumu County suppliers have resorted to threats and other tactics to pressure the county government to settle their pending bills, highlighting the economic pressure the sticky issue has morphed into for private companies and contractors.
According to the Office of the Controller of Budget, Kisumu had KShs. 1.38 billion in pending bills by 31st March 2024.At the beginning of FY 23/24, the County reported a stock of bills amounting to Kshs 2.04 billion for development activities.In the first nine months of FY 23/24, the County settled Kshs. 657.91 million on development spending programmes.“Some individuals have resorted to mob psychology, bullying our staff, and demanding payments without following proper procedures. While we acknowledge that we owe money to some of our suppliers, this does not give anyone the license to flout procedures and cause tension in public offices,” said Gov. Nyong’o, “This mob psychology must end. The department awards contracts to individual entities, not amorphous groups.”
Pending Bills are a National IssueThe sticky issue at the devolved units and national government prompted the Cabinet to approve a resolution for the verification of all pending bills from 1st July 2005 to 30th June 2022. To see this through, the Cabinet Secretary to the National Treasury and Economic Planning Prof. Njuguna Ndung’u constituted the Pending Bills Verification Committee (PBVC) led by former Auditor General Edward Ouko.
According to President William Ruto, the Government owes its suppliers, mostly small and medium-sized enterprises, more than KShs 600 Billion. The PBVC mandate is to scrutinize and analyze the bills, kickstarting the process of settling them. In addition to easing the government’s debt load and relationship with the private sector, it would release much needed liquidity and facilitate better economic performance.
Reprieve as Cabinet Approves Pending Bills Committee – Kenyan Wall Street
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