The total amount of pending bills owed by both the national and county governments increased by about Sh102.21 billion in the first nine months of the 2022/23 financial year.
An analysis of a report released by the Office of Controller of Budget shows that the total outstanding bills for both the national and county governments stood at about Sh689.26 billion as of March 31, 2023, compared to about Sh587.05 billion reported on 31st March 2022.
This amount, the report shows, comprises of some Sh529.53 billion (76.8%) owed by the national government and another Sh159.94 billion (23.2%) owed by counties.
The national government’s pending bill comprises Sh450.24 billion (85%) for state corporations, state owned enterprises, semi-autonomous government agencies and Sh79.29 billion (15%) for ministries, departments and government agencies.
The state corporations’ pending bills include payments due to contractors, projects, suppliers, unremitted statutory and other deductions, and pension arrears for Local Authorities Pension Trust.
The highest percentage of the state corporations’ pending bills (59.4%) belong to contractors and projects.
Controller of Budget Margaret Nyakango says in the report that government ministries, departments and agencies’ pending bills are mainly historical pending bills comprising Sh58.22 billion (73.4%) for recurrent expenditure and Sh21.07 billion (26.6%) for development expenditure.
“An analysis of pending bills shows a declining trend for ministries, departments and state agencies attributed to repayment and some bills declared ineligible.
“In the reporting period, the amount paid was Sh4.69 billion, comprising Sh4.56 billion for recurrent and Sh128.42 million for development expenditure. In addition, Sh1.87 million under the Public Service Commission was declared ineligible,” Ms Nyakango said.
State corporations, state owned enterprises, semi-autonomous government agencies recorded growth in development expenditure pending bills attributed to the continuous accumulation of bills.
The report by the Controller of Budget comes at a time when the National Treasury, last month announced plans by the government to clear its outstanding debts, amidst growing critisism and scrutiny.
Treasury Principal Secretary Chris Kiptoo, in a session with MPs said that the Treasury had already prepared a Cabinet memorandum spelling out its plans to clear some Sh641 billion bills that the government owes contractors and suppliers.
Kiptoo told the National Assembly’s Budget and Appropriations Committee that the Cabinet is expected to approve the formation of a multi-agency team to review the huge pending bills and establish a budget for clearance of the debts by September this year.
Estimates by the Treasury show that state corporations owe suppliers and contractors Sh407 billion, county governments (Sh160 billion) and ministries, departments and agencies (Sh18.3 billion).
The PS said that the multi-agency team will comprise officials from the Treasury, the Auditor General, Ministry of Roads, Public Works and Housing, the Public Procurement Regulatory Authority (PPRA) and the Ethics and Anti-Corruption Commission (EACC).
The pending bills team will also draw membership from the Law Society of Kenya (LSK), the Institution of Engineers of Kenya (IEK) and the Institute of Certified Public Accountants of Kenya (ICPAK).
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