State sets aside Sh229 billion for settling verified debts
Treasury Cabinet Secretary John Mbadi, while reading the budget statement in Parliament, said the allocation follows a detailed review process by a committee formed in September 2023 to assess pending claims.
The National Treasury has set aside Sh229 billion in the 2025/2026 national budget to pay verified pending bills, in a move aimed at settling long-standing government debts dating back nearly two decades.
Treasury Cabinet Secretary John Mbadi, while reading the budget statement in Parliament, said the allocation follows a detailed review process by a committee formed in September 2023 to assess pending claims.
“The committee received a total of 65,625 claims valued at over Sh571.6 billion,” said Mbadi. “It has so far analysed 57 percent of them, worth Sh522 billion,” he added.
Out of the analysed claims, the committee has recommended payment of Sh229 billion.
“Once the committee submits its report, we shall submit the recommendations to Cabinet for approval to settle the pending bills,” Mbadi told Parliament.
He said this effort is part of wider reforms meant to improve public financial management and rebuild trust in government systems.
The Controller of Budget’s latest Budget Implementation Review Report shows the national government’s pending bills rose by Sh24.9 billion year-on-year as of March 2025.
According to Margaret Nyakang’o’s report, total pending bills by the national government stood at Sh511.75 billion by the end of March, up from Sh486.81 billion during the same period last year. This marks a 5.1% increase.
The report shows that Sh421.63 billion, or 82% of the pending bills, are owed by state corporations, while ministries, departments, and agencies account for Sh90.12 billion, or 18%.
“State Corporations’ pending bills have increased by Sh16.35 billion compared to the Sh405.28 billion recorded in the same period of FY 2023/24,” the report reads.
