President William Ruto announced that the government will clear debts owed to suppliers, totaling hundreds of billions of shillings, by the end of this year.
Ruto shared that the Pending Bills Verification Committee had reviewed Ksh230 billion in supplier claims, with the government committing to pay Ksh150 billion of that amount. He assured suppliers that payments would be made within the next seven months, with 90 percent of the funds going to micro, small, and medium enterprises (MSMEs).
In a meeting with the national leadership of the Kenya National Chamber of Commerce and Industry (KNCCI) at State House Nairobi, the President acknowledged the significant impact of delayed payments on businesses. He emphasized the urgent need for the government to improve its internal financial systems to avoid similar setbacks in the future.
To prevent the accumulation of pending bills going forward, Ruto revealed that the government has moved all procurement processes to a digital platform starting April 1, 2025. This transition ensures that government agencies will only procure goods and services if they have approved budgets in place.
“Going forward, bidding and awarding government tenders will be done online,” he stated, signaling a step toward greater transparency and accountability in government spending.
Ruto also called for stronger collaboration between the public and private sectors to boost national development. He reiterated that his administration is committed to supporting local businesses through strategic partnerships, aiming to enhance both enterprise profitability and the country’s overall progress.
Encouraging members of the KNCCI to prioritize savings, Ruto suggested that this approach could provide small businesses with a more sustainable alternative to expensive loans when seeking investment capital.
“I want to encourage the private sector to facilitate savings to use it as an alternative when investing,” he noted.
Addressing recent concerns over the Ksh300 billion allocated for affordable housing, fresh produce markets, and institutional housing, Ruto clarified that the funds were not borrowed. He reassured the public that his government is working to reduce reliance on loans for development, opting for alternative funding mechanisms instead.
“It’s encouraging that all the companies working in the Affordable Housing Project are Kenyan-owned companies,” he added.
