The Pending Bills Verification Committee has approved the payout of Ksh236 billion of the over Ksh600 billion inherited by the Kenya Kwanza administration.

Chris Kiptoo, Principal Secretary for the National Treasury and Economic Planning said the government is making significant progress in addressing the pending bills.

“A significant portion of these funds will go towards settling dues owed to small business suppliers and road contractors, easing financial pressures on enterprises that rely on government contracts,” he said.

Kiptoo who was speaking at the DTB Economic and Sustainability Forum in Nairobi, expressed optimism about Kenya’s economic trajectory.

“When I started, it was very hard, and I had many sleepless nights. Now the worst is over, but the future is brighter. We have a resilient economy, diversified, and that’s how we come out of shocks,” he said.

The PS also said the stability of Kenya’s macroeconomic environment remains a priority, with the government continuing its partnership with the International Monetary Fund (IMF) to ensure fiscal discipline and economic resilience.

Kiptoo said the ministry will focus on key growth areas in the upcoming financial year, and stimulate money for the private sector to spur growth and economic development.

With emphasis on bolstering agricultural output and exports, the ministry has outlined a strategic focus on key industries including tea, edible oil, cotton, leather, dairy, natural resources, building materials, and the blue economy.

Kiptoo said these sectors are poised to drive economic expansion and create jobs, enhancing Kenya’s trade balance and revenue generation. To stimulate lending to the private sector, the government plans to transfer the Credit Guarantee Scheme to a State-owned entity.

This scheme, currently operated in collaboration with seven banks, ensures partial coverage of defaults, thereby encouraging more banks to extend credit to businesses, particularly small and medium enterprises (SMEs).

The implementation of the Single Treasury Account, e-procurement policy, zero-based budgeting, and public-private partnerships, are being prioritized to enhance efficiency and transparency in public finance management.

Meanwhile, the banking sector is also optimistic about the country’s economic outlook with DTB projecting increased lending to individuals and small businesses as the country stabilises.

DTB Kenya CEO Murali Natarajan emphasised the bank’s confidence in Kenya’s recovery, noting that banking sector credit could double within the next decade from the current $32 billion if the current growth momentum is sustained.

“When I look at the resilience of the economy and the track record of having dealt with so many challenges, that gives me immense confidence that I feel very confident about going forward,” he said.