The Kenyan Cabinet has approved Sh23.74 billion to settle outstanding payments to 28,726 suppliers and contractors. The decision comes after reports that some businesses had been waiting for years to receive payment for goods and services provided to public institutions.
The payment plan covers claims dating back to previous years, with some suppliers reporting delays stretching over multiple administrations. The move aims to address financial obligations that have accumulated due to administrative delays and budgetary constraints. The Cabinet’s approval was part of a broader effort to improve transparency and accountability in public procurement.
This initiative follows growing pressure from business groups and civil society organizations, which highlighted the impact of delayed payments on small and medium enterprises. The government has acknowledged the issue and emphasized the need for timely disbursements to support economic stability. The payment process will be managed through a centralized system to ensure accuracy and prevent future delays. The funds will be distributed in phases to cover both current and historical claims.
