PS: No funds for unsettled pending bills
By Harrison.Kivisu, August 15, 2023The National Treasury has said that no new financial commitments will be made for development, until county governments and other government entities clear their pending bills, within this fiscal year.
Dr. Chris Kiptoo, the Principal Secretary of the National Treasury, noted that pending bills have posed a continuous threat to the effective allocation of resources and accountability, necessitating the establishment of discipline for the future.
“To address pending bills beginning this financial year, we have said that as the National Treasury, no accounting officer will be allowed to make new commitments based on the budget without clearing existing pending bills,” stated Kiptoo.
Kiptoo further indicated that counties seeking new funding in the current financial year must provide evidence of clean records of pending bill payments.
Utilisation of funds
Simultaneously, Treasury is laying out plans to reinforce the planning function and the monitoring and evaluation system to oversee all projects. This initiative aims to ensure transparency and the optimal utilisation of funds.
“We have agreed with the Cabinet Secretaries to monitor without additional exchequer funding for entities seeking new funds without clearing existing obligations. We believe that by implementing stricter measures, discipline will be upheld at the Treasury,” Kiptoo explained.
Kiptoo urged the Senate to push counties to settle pending bills, revealing that a pending bills committee will be established to complete a report within two months. The objective is to streamline the system of pending bills and address any discrepancies. The PS was speaking during a joint retreat with national assembly committees.
, Ndung’u stressed the need for policy changes and rethinking strategies, particularly due to the interplay between food security, climate change, and policy adjustments. He highlighted the reversal of efforts due to the impact of drought and emphasized the necessity for a significant, long-term vision to foster policy clarity and commitment.
Reflecting on a separate matter, Treasury and Economic Planning Cabinet Secretary Prof. Njuguna Ndung’u expressed regret over the country’s lag in combating climate change and ensuring food security amidst regional threats.
As Kenya grapples with these multifaceted challenges, the Treasury’s resolute stance on pending bills aims to streamline financial operations and promote accountability, while policy adjustments and strategic thinking are underscored as imperative for the nation’s sustainable development.