The government has approved Sh225 billion of the Sh606 billion pending bills, paving the way for the national and county governments to pay suppliers.
According to Chris Kiptoo, the National Treasury Principal Secretary, Sh80 billion within the road sector has already been cleared, with the remaining Sh175 billion set to be cleared in the coming months.
Dr Kiptoo acknowledged the difficulties business entities have been exposed to as a result of delays in clearing the accumulated pending bills owing to the fiscal deficit the country was experiencing.
However, the PS assured supplies to National government that all the approved pending bills would be paid within the next two fiscal years, noting that the National Treasury will engage the Cabinet for approval of the Sh175 billion.
The government had announced the formation of the verification committee to scrutinise and verify the national government's pending bills accumulated between July 1, 2005, and June 30, 2022, after an outcry over non-payment of supplies.
Addressing MPs in Naivasha during the ongoing 2026 Legislative Retreat, Dr. Kiptoo said the government was experiencing a shrinking fiscal space with reduced revenues and tax collections over the years.
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Kiptoo said that out of the projected Sh4.6 trillion budget for 2026/2027, Sh1.8 trillion was earmarked for offsetting interest on loans, representing 48 percent of collected revenues.
The PS also said the current public debt, which had hit Sh12 trillion by September 30, 2025, was unsustainable as it was eating away much-needed development budget for key projects across the country.
On his part, National Assembly Budget chair Kimani Kuria defended the sale of 15 percent stake of government Safaricom shares out of the 35 percent which is projected to net sh. 240 billion.
He said that the total collected funds would go only to infrastructure projects, while noting that out of the revenue collected, only Sh29 billion was left for projects.
"The government's move to sell 15 percent stake of its shares to Vodacom at Sh34 per share will net the government Sh240 billion, which will go to fund key infrastructure owing to limited budget constraints on development expenditure.
Majority Leader Kimani Ichung’wa, attributed the pending bill crisis to a cartel working in the Treasury and at the county levels.
He said that despite the government releasing billions to offset the bills, senior county officers were holding the funds with a view to extorting suppliers.
On the planned Safaricom share sales, Ichung’wa challenged those opposed to the sale of 15 percent of government shares to come up with alternative and better deals.
"We have heard people who are opposed to the sale of Safaricom shares to Vodacom, and we are challenging them to come up with an investor who can come up with a better deal," he said.
Others who spoke were Nyandarua Women rep who said that suppliers were undergoing untold suffering while waiting for payment.