Government Reduces Pending Bills by Sh106.6bn in Ongoing Debt Clearance Effort
The National Government’s outstanding bills have decreased by Sh106.6 billion, totaling Sh516.27 billion by June 30, 2024. This reduction is largely attributed to the government’s recent efforts to clear pending debts.
According to the latest data from the Controller of Budget (CoB), as of June 30, 2023, the government’s debt to various entities and individuals stood at Sh622.82 billion.
These arrears are spread across different sectors, with state corporations owing the highest amount at Sh379.81 billion to suppliers. Ministries, departments, and agencies (MDAs) followed with debts amounting to Sh136.45 billion. In comparison, a year earlier, corporations owed Sh443.6 billion to suppliers and contractors, while MDAs owed Sh179.22 billion.
The report highlights that MDAs’ pending bills are largely historical, with Sh100.73 billion (74%) allocated for recurrent expenditure and Sh35.72 billion (26%) for development expenditure.
The FY 2023/24 saw a decline in MDAs’ pending bills by Sh42.18 billion, including Sh30.81 billion for recurrent and Sh11.37 billion for development expenses.
For state corporations, pending bills cover payments to contractors, suppliers, and pension arrears, among others. Contractors and project payments made up the largest share of the pending bills at Sh235 billion (62%), followed by pension arrears at 13%.
In June 2023, the Cabinet established a Pending Bills Verification Committee to audit the government’s outstanding bills from 2005 to 2022. As part of this initiative, the National Treasury has begun accepting submissions from the public to help settle outstanding arrears.
By January 31, 2024, 1,537 companies had submitted claims worth Sh145.5 billion, involving 38 MDAs, highlighting the ongoing efforts to address the government’s historical debt burden.
