Kenya Approves Sh23.74bn Payment for Suppliers
The approval also aims to restore confidence among contractors and suppliers who depend on government tenders for their income.
The Cabinet has approved the payment of Sh23.74 billion in verified government pending bills, paving the way for thousands of suppliers and contractors to recover money owed for goods and services delivered to public institutions. Photo: Tuko News.
By Robert Mutasi
The Cabinet has approved the payment of Sh23.74 billion in verified government pending bills, paving the way for thousands of suppliers and contractors to recover money owed for goods and services delivered to public institutions.
The approval, announced on Friday, October 9, 2026, covers 28,726 claims valued at Sh50 million or less. Some businesses have waited for more than 20 years to receive payment, with certain debts dating back to 2005.
The settlement represents 98 per cent of the 29,257 claims that the Pending Bills Verification Committee recommended for payment following a review of outstanding government obligations.
The committee received 115,617 claims worth Sh664.8 billion. However, it recommended only 29,257 claims valued at Sh155.34 billion for settlement after examining the submissions.
The National Treasury will oversee the payment process, with priority given to micro, small and medium-sized enterprises (MSMEs). Businesses owned by women, young people and persons with disabilities will receive particular attention.
The government expects the payments to ease financial pressure on businesses that have struggled to meet operating expenses, pay employees and maintain their operations while waiting for money from public institutions.
The approval also aims to restore confidence among contractors and suppliers who depend on government tenders for their income.
However, the latest allocation covers only verified claims of Sh50 million and below. The government has indicated that it will settle larger bills progressively, although it has not provided a detailed payment timetable for all outstanding claims.
The decision follows an earlier settlement of more than Sh80 billion in pending bills within the roads sector.
The clearance of outstanding debts is expected to release working capital into the private sector, particularly among smaller businesses that often rely on timely payments to remain operational.
The Cabinet also approved a series of investments in healthcare, energy, transport and water infrastructure during its Friday meeting chaired by President William Ruto at State House in Nairobi.
Among the major healthcare proposals is the construction of a 2,000-bed Moi Teaching and Referral Hospital and a 1,000-bed Level Six hospital in Mombasa. The government also plans to expand 13 Level Five hospitals across the country to increase bed capacity and ease pressure on referral facilities.
The decisions form part of the government’s broader development programme, which includes infrastructure expansion, improved access to essential services and measures aimed at supporting businesses and economic activity.
For suppliers awaiting payment, the approved Sh23.74 billion settlement marks an important step towards recovering verified debts. However, the impact will depend on how quickly the Treasury releases the funds and implements the payment process.
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