THE STAR INFOGRAPHICS
Some state entities are not able to pay their debts and some suicides cases have been reported by indebted suppliers not paid by the government Doing business with the government — once considered a lucrative venture — has now become a risky gamble that could sink your life investments.
A new report shows that national government suppliers and contractors are still owed billions of shillings, some dating back 10 years.
Treasury Cabinet Secretary John Mbadi has repeatedly admitted Kenyans are financially strained because of the huge pending bills but says President William Ruto is not to blame for the mess.
“If we are complaining about the bad economy, that life is difficult, why is life difficult? Two reasons: number one public debt, number two pending bills. Are you telling us the pending bills were incurred when Ruto was the President?” Mbadi asked on Friday, saying the challenges will not be sorted in a single day.
A new report by Controller of Budget Margret Nyakang’o shows that pending bills for the national government alone stand at Sh528 billion.
Counties separately owe suppliers and contractors Sh168 billion. Some suppliers and contractors reportedly committed suicide and others reportedly died of depression because of debts owed to them by both counties and the national government.
Auctioneers have often landed on their prime assets as banks move in to recover loans. Bills owed by state corporations accounted for the highest amount at Sh410 billion, while ministries, state departments and agencies were yet to settle bills worth Sh117.7 billion.
