Suppliers owed hundreds of billions of shillings by the government will be paid before the end of the year, President William Ruto announced.
The President said Ksh230 billion of debts owed to suppliers have been verified by the Pending Bills Verification Committee. Of these, the government will pay Ksh150 billion.
In that regard, Ruto pledged that the suppliers will get their dues within the next seven months, adding that 90 per cent of the funds will be paid to micro, small, and medium enterprises.
Speaking when he hosted the leadership of the Kenya National Chamber of Commerce and Industry from across the country at State House Nairobi on Friday, May 9, President Ruto regretted that pending bills were hurting businesses, noting the need for the State to improve on its own mechanisms.
Consequently, Ruto expressed that the government moved procurement to a digital platform from April 1, 2025, to avert situations where entities procure goods and services without the requisite budgets.
“Going forward, bidding and awarding government tenders will be done online,” he stated.
The President called for a partnership between the private and public sectors in accelerating development, saying the government is working with all partners to nurture, build, and support local enterprises.
“This will enhance enterprise profitability and the country’s progress,” said President Ruto.
At the same time, the President urged the KNCCI members to facilitate savings so that more small firms can use them instead of seeking expensive loans for investment.
“I want to encourage the private sector to facilitate savings to use it as an alternative when investing,” he said.
Ruto also cleared the air on reports claiming that the Ksh300 billion used to construct affordable housing units, fresh produce markets, and institutional housing had been borrowed, noting that his administration was aiming to move away from borrowing in the long term.
Ruto assured that his administration was moving away from burdening citizens with borrowed funds for development, saying it is resorting to different mechanisms of funding development initiatives.
“It’s encouraging that all the companies working in the Affordable Housing Project are Kenyan-owned companies,” he said.
The President also urged the Chamber of Commerce and Industry to work with the government over the management of sugar mills, citing the recent move by the government to lease all its owned factories.
The matter, however, has attracted controversy with leaders from across the political divide split on whether it will benefit farmers.
