The Institute of Certified Public Accountants of Kenya (ICPAK) has questioned the National Treasury over the delayed disbursement of funds intended to offset pending bills.
ICPAK Director of Public Policy and Research, Hillary Onami said the institute is concerned that pending bills have caused pains of cash flow, auction and closure to many micro, small and medium enterprises (MSMEs) in Kenya.
The submissions brought before the Planning Committee of the National Assembly revealed a mismatch in legislation meant to ensure prompt payment of government obligations.
“As an institute whose key mandate is to safeguard public Interest, we are dedicated to enhancing our contribution and that of our members to the national economic growth and development agenda through this piece of legislation,” said Onami during discussions on the amendments to the Prompt Payment Bill 2021.
ICPAK stated before the committee that it is determined to seal the processing and payment of pending bills by charging interest on late payments due to challenges in exchequer releases.
When enacted, the Bill will establish a legal framework to facilitate prompt payment for the supply of goods, works and services procured by government entities at the national or county levels.
However, the Treasury, through Chief Administrative Secretary Nelson Gaichuhie dismissed the proposed amendments, claiming the existing legislation and regulations are sufficient to ensure timely payment of pending bills.