Kajiado North Member of Parliament (MP) Onesmus Ngogoyo has urged the government to prioritise the settlement of pending bills within the first quarter of the financial cycle, warning that delays in payments continue to undermine economic activity and strain businesses across the country.

Ngogoyo said unpaid suppliers remain a major challenge affecting service delivery and private sector stability, noting that many businesses contracted by government agencies are struggling to stay afloat due to delayed payments.

“I hope the government will be able to pay pending bills in the first quarter because they remain a thorn in the flesh. Part of why our economy is static is because people supply to this government in all sectors, but they are not paid,” Ngogoyo said.

Pending bills pressure

Pending bills have remained a recurring fiscal challenge in Kenya, with both national and county governments accumulating arrears owed to contractors, suppliers, and service providers.

In response, the National Treasury has, in recent budgets, allocated substantial funds running into hundreds of billions of shillings cumulatively to help clear verified obligations and stabilise the business environment.

However, despite these allocations, the backlog has persisted due to verification delays, disputes over documentation, and the continuous accumulation of new unpaid obligations.

Economic impact

Economists warn that delayed government payments reduce liquidity in the economy, disrupt supply chains, and weaken investor confidence. Small and medium enterprises, which heavily rely on government contracts, are often the most affected, facing cash flow shortages and reduced capacity to sustain operations.

Budget allocation on pending bills

The National Treasury CS John Mbadi said that the Treasury has allocated Ksh68B in the 2026/27 budget in a bid to clear 99% of verified pending bills as the government aims to boost operational efficiency and reduce spending on interest payments.

While presenting the 2026/27 Budget Statement in the National Assembly on Thursday, June 11, Treasury Cabinet Secretary John Mbadi said that to pay off a long-overdue pile of government bills that are owed to suppliers and contractors, the National Treasury has earmarked Ksh68 billion in the 2026/27 budget for the payment of such bills that have been identified.

“In FY 2026/27, the National Treasury proposes a budgetary provision of Ksh68.0 billion to settle the verified bills to suppliers and contractors owed by the government for amounts of up to Ksh100 million. This provision will also partly settle suppliers/contractors whose pending bills exceed Ksh100 million, ensuring that no supplier is excluded,” Mbadi said.