Gov't to settle verified pending bills of Ksh.50M and below

The Cabinet has approved the settlement of verified government pending bills worth Ksh.23.74 billion for claims of Ksh.50 million and below, in a move expected to provide relief to thousands of suppliers and contractors owed money for years.

The approval covers 28,726 verified bills, representing 98 per cent of the 29,257 claims recommended for settlement following a review by the Pending Bills Verification Committee.

The Cabinet, in a despatch issued on Friday following a meeting, noted that some of the affected suppliers and contractors have reportedly been waiting for payment since 2005.

“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,” read the Cabinet despatch.

The Pending Bills Verification Committee received 115,617 claims valued at Ksh.664.8 billion. Following the verification exercise, it recommended 29,257 claims worth Ksh.155.34 billion for settlement.

The Cabinet further approved the progressive settlement of verified pending bills exceeding Ksh.50 million, signalling that larger claims will be addressed in subsequent phases.

The decision follows the earlier clearance of pending bills worth more than Ksh.80 billion in the roads sector, as the government moves to address longstanding payment obligations.

In the healthcare sector, the Cabinet endorsed a 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 involve the expansion of 13 Level Five hospitals 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.

Cabinet also endorsed a separate Ksh.8 billion healthcare programme in partnership with France to establish and equip specialised head and neck surgical units at Kenyatta National Hospital (KNH), Moi Teaching and Referral Hospital (MTR) and the University of Nairobi Dental Hospital.

The initiative will strengthen cancer treatment services while supporting the training of 5,000 community health workers as part of broader efforts to improve healthcare access and delivery.