Kenya’s main business chamber has told the government that approving Sh23.74 billion for verified pending bills is not enough unless the money reaches suppliers quickly.
The Star reported on Wednesday that the Kenya National Chamber of Commerce and Industry welcomed Cabinet’s decision last week to settle 28,726 claims of Sh50 million or less—about 98 per cent of the 29,257 claims the Pending Bills Verification Committee recommended for payment. Chamber president Erick Ruto said the move would ease pressure on firms that have waited years, some since 2005.
“This will go a long way in relieving the pain of many MSMEs and businesses that have suffered as a result of the delays in payments,” Ruto said, according to The Star.
A slice of a much larger pile
The committee received 115,617 claims worth Sh664.8 billion. After review it recommended settling 29,257 claims valued at Sh155.34 billion, The Standard and Kenyan Business Feed reported. The Sh23.74 billion approved covers the smaller verified invoices; larger bills are to be paid progressively.
The National Treasury is to oversee disbursement, with priority for micro, small and medium enterprises, especially those owned by women, young people and persons with disabilities. No payment timetable for individual suppliers was published with the Cabinet dispatch.
KNCCI warned that long verification had already cost businesses opportunities and eroded claim values through inflation. It urged national and county governments to finish verifying outstanding claims and to settle them promptly, and called for lower taxes and harmonised levies to cut the cost of doing business.
Why timing matters for suppliers
Unpaid government invoices lock working capital that firms need for wages, stock, taxes and loan repayments. For smaller contractors, delays can stop them bidding for new work even when the underlying business is sound.
The chamber cited the 2016 MSME survey showing more than 7.4 million micro, small and medium enterprises employing over 14.4 million people and contributing about 33.8 per cent of GDP. Ruto said supporting that segment was central to jobs and local production.
Suppliers watching when cash hits their accounts will also watch county payment cycles; firms that need digital invoicing, collections or marketing support often turn to agencies such as Ananke Digital while they wait for arrears to clear.
Sources: The Star | The Standard | Kenyan Business Feed
Photo: Francis Akuka for the Wikimedia Foundation / Wikimedia Commons (CC0)
