Light at the end of the tunnel: State set to settle Sh220bn pending bills

After years of uncertainty, contractors and suppliers owed billions by the government may soon smile their way to the bank.

Treasury Cabinet Secretary John Mbadi announced plans to settle the long-standing issue of pending bills, some dating back to 2005.

Speaking during the presentation of the 2025/26 budget estimates, Mbadi revealed that the Pending Bills Verification Committee is finalising its report and set to submit it by the end of the month (June).

“The government remains committed to resolving the long-standing issues of pending bills as part of the broader effort to strengthen public resource management and restore public confidence in the government processes,” he said.

The special committee, chaired by former Auditor General Edward Ouko, was formed in 2023 and tasked with auditing liabilities incurred between 2005 and 2022.

According to Mbadi, once the committee submits its report, it will be reviewed and its recommendations presented to the Cabinet for approval.

“From there, we shall embark on clearing the eligible bills, starting with those related to individuals, businesses, and MSMEs, the majority of whom have borne the brunt of unemployment,” he said.

So far, the committee has analysed 57 per cent of the claims, covering bills worth Sh522 billion. Of these, Sh229 billion has been recommended for settlement.

Mbadi said a total of 65,625 claims valued at over Sh571.6 billion were submitted for verification.

The committee approved by the Cabinet was tasked with auditing liabilities for the period between 2005 and 2022.

The national government pending bills from June 2005 to June 2022 stand at Sh481 billion, while counties owe Sh159.9 billion.

The committee consists of the Attorney General, the State Department of Roads, the State Department of Public Works, the State Department of Housing and Urban Development and the Public Procurement Regulatory Authority.

Representatives of the Ethics and Anti-Corruption Commission, the Law Society of Kenya, the Institute of Engineers of Kenya and the Institute of Certified Public Accountants of Kenya are also part of the team.

Crucially, the committee will propose a mechanism to stop future pending bills.