President Uhuru Kenyatta while delivering a Christmas speech from Mombasa County on December 24, 2019, directed all Cabinet secretaries and government offices to pay pending bills by January 15, 2020.
He had previously issued similar ultimatums for June 30, 2019, and November 30, 2019, which, unfortunately, could not be executed.
On Thursday, January 16, 2020, Daily Nation reported that The Kenyatta International Convention Center (KICC) is starring at a possible auction of its assets over pending bills owed to service providers.
However, a look into the convention centre's debtors revealed that the KICC was owed in excess of Ksh667 million by government agencies, private firms, and NGOs, as reported by the Daily Nation.
Interestingly, the office of the president and a number of its departments owe Ksh40 million, contributing to KICC's inability to offset its current debts.
Run by President Uhuru Kenyatta's niece, Nana Gecaga, KICC reportedly owes in excess of Ksh211 million to sixty-nine business entities.
This scenario rather contradicts the head of state's prior directives setting a date for all government agencies and county governments to have repaid all pending bills owed to service providers.
A report by the office of the auditor general in 2018 indicated that the office of the government spokesperson, the office of the Presidential Delivery Unit housed at the KICC owed subsequently huge bills.
According to the publication, a greater percentage of the debt dates as far back as 2015 for services rendered for the 10th edition of the World Trade Organisation (WTO) interministerial conference.
After the set January 15 repayment deadline elapsed, suppliers have stated that they will move to court to have the matter resolved.
“We have already instructed our lawyers to prepare relevant papers for filing in court. It is like some individuals do not want to comply with the presidential directive," the publication quoted a source who sought anonymity.
A report by the office of the auditor general in 2018 adviced against the matter being settled in court as it would result in an auction. It also highlighted that service providers were yet to be fully compensated.
“The corporation [risks auctioning of its assets] in the event that the claims are not settled, as most claimants have contracts, LPOs, LSOs and award letters,” the report read in part.
They also bear valid letters from the KICC confirm the supply of materials and services and also proof of work done.
