NAIROBI: The Cabinet has approved immediate release of Sh15.6 billion by the National Treasury to settle pending bills accrued during the last financial year.
A statement from State House yesterday said the special Cabinet meeting chaired by President Uhuru Kenyatta approved Sh3.2 billion to settle pending bills under the Government Procurement Opportunities and Empowerment Programme for the last financial year.
The other Sh12.4 billion will settle debts State agencies owe private firms for services or goods procured in the 2015/2016 financial year.
“I can confirm that Cabinet also discussed and approved the release by the National Treasury of Sh12.4 billion to settle pending bills from the last financial year. This money is to be made available immediately to clear all pending bills ...,” State House spokesperson Manoah Esipisu said.
In total therefore, up to Sh15.6 billion will be paid out to businesses owed money.
“The Ministries were directed to start paying today (Friday) and make sure that all payment are settled by next week,” said the statement.
AGPO was initiated through Uhuru’s directive in 2013 and requires that 30 per cent of all government tenders be given to youth, women and persons with disability.
The Cabinet also approved the Land Amendment Bill 2016 to address challenges associated with land acquisition. The bill, if passed, it will create basis for land evaluation in the country and create a register of all public land.
Currently, the implementation of mega government projects has been derailed or delayed by length negotiations with land owners over the compensation.
Some of the projects facing the delays include the Lamu Port, Standard Gauge Railway (SGR) and Shh.2.7 billion Port Reitz/Moi International Airport access road project whose completion would delay for two months due compensation hitches.
The Sh380 billion Standard Gauge Railways is still facing resistance in Mombasa where 1,700 fishermen are demanding Sh2.1 billion as compensation.
The Standard Group Plc is a
multi-media organization with investments in media platforms spanning newspaper
print operations, television, radio broadcasting, digital and online services. The
Standard Group is recognized as a leading multi-media house in Kenya with a key
influence in matters of national and international interest.
join