Govt to Pay Ksh 23.74 Billion in Pending Bills, Thousands of Suppliers Set to Benefit

The Kenyan government has approved the settlement of pending bills worth Ksh 23.74 billion, offering relief to thousands of suppliers and contractors who have waited for years to receive payments for goods and services they provided.

On Friday, October 9, 2026, the Cabinet announced the decision at State House, Nairobi, approving the settlement of verified government bills worth Ksh 50 million and below.

“The payment of 28,726 verified bills totalling KSh23.74 billion, representing 98 per cent of the 29,257 recommended for settlement, will bring long-awaited relief to thousands of suppliers and contractors, some owed money since 2005,” the Cabinet stated.

Following the approval, the National Treasury will oversee implementation and coordinate the release of funds to eligible businesses.

The payments are expected to ease cash-flow pressures, protect jobs and restore confidence among suppliers and contractors affected by delayed government payments.

How Government Verified Pending Bills

The Pending Bills Verification Committee received 115,617 claims worth Ksh 664.8 billion during its comprehensive review of outstanding government obligations.

After examining the submissions, the committee recommended 29,257 claims valued at Ksh 155.34 billion for settlement. However, the Cabinet’s latest approval covers 28,726 verified bills totalling Ksh 23.74 billion.

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The government expects the settlement to help businesses that have struggled to maintain operations because of delayed payments for goods and services supplied to public institutions.

“The National Treasury will oversee implementation, releasing much-needed funds to businesses struggling with delayed Government payments, easing cash-flow pressures, protecting jobs and restoring confidence among suppliers and contractors,” the Cabinet stated.

Small Businesses to Receive Priority

As the government implements the settlement, it will prioritise micro, small and medium enterprises (MSMEs), particularly those owned by women, young people and persons with disabilities.

These businesses often rely on government contract payments to cover operating expenses, pay employees and sustain their activities.

Consequently, clearing the verified claims could ease financial pressure on enterprises that have struggled to receive money owed to them.

However, the current approval does not cover every claim recommended for settlement.

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The Cabinet plans to clear verified bills exceeding Ksh 50 million progressively, allowing the government to address larger claims in subsequent phases.

“The remaining verified bills exceeding KSh50 million will be settled progressively, ensuring that larger claims are also addressed,” the Cabinet stated.

The latest decision follows an earlier clearance of pending bills worth more than Ksh 80 billion in the roads sector.

This forms part of the government’s broader efforts to address outstanding payment obligations.

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