Sh60 billion set aside in plan to tackle country's 'sticky issues'

President William Ruto breaks ground during the launch affordable housing project in Starehe, Nairobi on March 6, 2023. [PCS, Standard] The government has said it will clear pending bills to the tune of Sh60 billion over the next four months. State House in a statement on Monday said more than Sh60 billion has been provided for pending bills in what it termed an "ambitious plan to tackle the sticky issue in the country." This is, however, just a fraction of the money that government owes suppliers of different goods and services, with the Controller of Budget (CoB) putting the total pending bills by the national government at Sh481 billion as of December 2022. This goes up to over Sh60 billion when the about Sh160 billion that counties owe their supplies is factored in. In the statement, which was issued when President William Ruto assented to the supplementary budget that sailed through Parliament last week, State House said the funds released yesterday would ensure uninterrupted delivery of services. Fertiliser subsidy The supplementary budget also provided funds for the fertiliser subsidy (Sh15 billion), drought mitigation (Sh10 billion) and hiring of additional teachers (Sh6 billion). According to the Controller of Budget, the total outstanding national government pending bills amounted to Sh481 billion as of December 2022, which includes both historical and recently acquired pending bills. "These comprise Sh400.7 billion (83.3 per cent) for State Corporations and Sh80.3 billion (16.7 per cent) for MDAs (Ministries, Departments and Agencies)," said CoB in a February report on budget implementation by the national government. "The State Corporations' pending bills include payments due to contractors/projects, suppliers, unremitted statutory and other deductions, and pension arrears for Local Authorities Pension Trust. The highest percentage of the State Corporations' pending bills (70.6 per cent) belong to contractors/projects and suppliers." "MDAs' pending bills were mainly historical pending bills comprising Sh59.12 billion (73.6 per cent) for recurrent expenditure and Sh21.17 billion (26.4 per cent) for development expenditure." Counties owed suppliers Sh161.36 billion as of September, with Nairobi county being the largest defaulter, accounting for Sh6 out of every Sh10 of the pending bills by counties. Some counties, the CoB noted, have not been making efforts to settle their pending bills. Revenue "The Controller of Budget advises county governments to settle all eligible pending bills as a first charge in the financial year 2022/23. Further, the National Treasury is urged to ensure the disbursement of the equitable share of revenue," said CoB. The Supplementary Appropriation Bill, which the President assented to on Monday, gives authority for the issuance of Sh200.7 billion out of the Consolidated Fund and applies it towards the supply granted for the service of the year ending this June. It includes provisions for capitation for students entering junior secondary school, recruitment of additional teachers, and improvement of school infrastructure as well as additional provisions for school feeding. According to the Bill, the recruitment of additional teachers will absorb Sh6 billion, school feeding under National Council for Nomadic Education Sh2 billion, drought mitigation Sh10 billion and fertiliser subsidy Sh15 billion. The President said the country's food security requires long-term and sustainable solutions. "That is why the supplementary estimates have funded a wide range of interventions such as the expansion of irrigation systems," he said. The President said the Bill has reduced the supply by Sh143.7 billion to the various votes, which will play a critical role in stimulating the economy.

Sh60 billion set aside in plan to tackle country's 'sticky issues'

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Sh60 billion set aside in plan to tackle country's 'sticky issues'

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