Cabinet approves Sh23.74billion payment to suppliers in pending bills settlement drive
The approval covers 28,726 verified claims, representing 98 per cent of the 29,257 claims recommended for settlement by the Pending Bills Verification Committee.
The cabinet has approved the settlement of verified government pending bills worth Sh23.74 billion owed to suppliers and contractors with claims of Sh50 million and below, in a move expected to ease cash-flow pressures on businesses and revive confidence in public procurement.
The approval covers 28,726 verified claims, representing 98 per cent of the 29,257 claims recommended for settlement by the Pending Bills Verification Committee.
In a cabinet dispatch issued yesterday, the government noted that some suppliers and contractors had waited for payment since 2005, leaving businesses struggling with prolonged delays in settling government obligations.
“The National Treasury will oversee implementation, releasing much needed funds to businesses struggling with delayed Government payments, easing cash-flow pressures, protecting jobs and restoring confidence among suppliers and contractors,” the dispatch stated.
The Pending Bills Verification Committee received 115,617 claims valued at Sh664.8 billion. Following its verification exercise, it recommended 29,257 claims worth Sh155.34 billion for settlement.
Cabinet also approved the progressive settlement of verified pending bills exceeding Sh50 million, signalling that larger claims will be addressed in subsequent phases.
The latest decision follows the earlier clearance of pending bills worth more than Sh80 billion in the roads sector, as the government seeks to address longstanding payment obligations to businesses supplying goods and services to public institutions.
Government expands hospital infrastructure
Separately, Cabinet endorsed a nationwide hospital infrastructure programme aimed at expanding access to specialised treatment, strengthening referral services and accelerating the implementation of Universal Health Coverage (UHC).
The programme includes the construction of a new 2,000-bed Moi Teaching and Referral Hospital and a 1,000-bed Level Six hospital in Mombasa.
It will also see 13 Level Five hospitals expanded by an additional 300 beds each in Mandera, Marsabit, Turkana, Kilifi, Embu, Nakuru, Laikipia, Migori, Nyamira, Baringo, Bomet, Narok and Kisii counties.
The planned investments are intended to increase hospital capacity, ease congestion at referral facilities and bring specialised healthcare services closer to communities across the country.
The expansion is expected to strengthen the country’s capacity to handle complex medical cases while improving access to higher-level treatment outside major urban centres.
Sh8billion France partnership for specialised treatment
Cabinet also endorsed a separate Sh8 billion healthcare programme in partnership with France to establish and equip specialised head and neck surgical units at Kenyatta National Hospital, Moi Teaching and Referral Hospital and the University of Nairobi Dental Hospital.
The initiative will strengthen specialised cancer treatment services while supporting the training of 5,000 community health workers.
The programme forms part of broader government efforts to improve healthcare delivery, expand access to specialised medical services and strengthen the country’s health workforce.
The three decisions highlight the government’s parallel efforts to settle outstanding financial obligations to businesses, expand public hospital infrastructure and improve access to specialised healthcare services.
While the pending-bills approval provides a framework for releasing payments to verified creditors, the settlement of larger claims will proceed progressively, according to the cabinet’s decision.
