Mr Yatani, during his 2021/2022 budget, he said delays in paying government bills to suppliers have created liquidity issues while most businesses are suffering the effects of the Covid-19 pandemic.
The CS has instructed all ministries, departments and agencies (MDAs) to settle their outstanding bills amounting to billions of schillings before the end of the current financial year on June 30th.
“Although in the settlement As these bills progressed through the national government, we still have challenges with the district governments who still owe huge amounts to various suppliers. In this regard, I instruct the ministries, ministries and agencies as well as the district governments to settle all their outstanding bills by June 30, 2021, “ordered the CS.
” Mr. Mr Speakers, I urge this House to support our efforts to enforce compliance with the payment of all verified outstanding bills of the district governments by supporting our proposal under Article 225 of the Kenyan Constitution to temporarily suspend remittances to district governments that the directive persistently fails to pay outstanding bills, ”he said.
Mr. Yatani told the press after delivering his budget speech that the Treasury Department had ordered an audit to be conducted The amount of outstanding invoices in each county and for each county to provide a clear report on how they intend to settle them with their budget allocations.
“We have commissioned a new audit for the counties to review these bills and then the counties will give us a roadmap of how they’ll be enclosing them cannot continue to pay out funds if the suppliers of these goods and services are not paid, “said Mr. Yatani.
Data from the Treasury Department show that the total outstanding number of invoices in September last year was 346.2 billion Shillings from Sh334.2 billion in June.
Among MDAs, the State Department of Infrastructure has the highest outstanding bills at Sh99 billion, nearly half of its budget allocation of Sh192.54 billion for the new fiscal year . Of this, Sh31 billion is due in compensation to landowners who have been relocated to pave the way for the construction of projects.
A similar loan is already being issued by the Treasury Department used to raise funds to fund infrastructure projects, and the Central Bank of Kenya in April issued an 18-year amortized bond of $ 60 billion to fund those projects in the fiscal year just ended and opened offers for a minimum of $ 100,000 From every investor / p>
Investors in the tax-free bond receive interest payments every six months, with the first payment due on October 11th.
“Outstanding invoices and stalled projects continue to represent a significant Challenge in almost all household areas. The Treasury Department has not provided a clear roadmap for effectively closing these matters, “said the committee.
” Having examined the above matters, the committee recommends that the Treasury establish a fund that can be borrowed through long-term borrowing to pay the existing audited pending bills and court rulings, “she added.