MPs demand answers as Sh700 billion in pending bills remains unpaid

The National Assembly is grappling with new pressure to account for Sh700 billion in unpaid government debts as Members of the Public Accounts Committee (PAC) demand answers from the pending bills verification panel.

Legislators expressed concern that the slow pace in processing claims may be a cover to delay payment, causing immense suffering to individuals who did business with the government.

Funyula MP Dr Wilberforce Oundo, a member of the committee, gave a chilling account of how one of his constituents died after years of unsuccessfully pursuing money owed by the State.

"This thing called verification of pending bills, what is it really?" he asked. "I know of a person from my constituency who went to the grave because of the frustrations he encountered chasing what the government owed him."

The committee, led by Butere MP Tindi Mwale, now wants the verification panel, chaired by former Auditor-General Edward Ouko, to appear before it and account for the slow progress.

"We have to invite the pending bills verification committee to hear from them on this matter. Legitimate individuals who have done business with the government and delivered shall not continue to suffer the ignominy of being auctioned while some government agencies take their sweet time," Mwale said.

The verification committee, which was tasked with examining pending bills owed by the national government, has already rejected claims amounting to Sh268 billion out of the Sh664 billion submitted by March this year.

These figures were tabled in a report to the National Assembly Liaison Committee during discussions on the 2025 Medium Term Debt Management Strategy.

The committee is mandated to analyse pending bills accumulated over the years and recommend how they should be settled. It is also expected to create a standard procedure for reviewing and authenticating each claim to determine its validity.

But MPs argue that the current system is punishing even those with genuine claims.

Audit reports from Auditor-General Nancy Gathungu reveal that unresolved bills distort financial records and interfere with the planning and execution of future budgets.

"Pending bills could expose the project to the risk of incurring unnecessary interest and penalties in case of litigation," the reports say.

The mounting unpaid bills also contradict the Public Finance Management (PFM) Act, which mandates that procurement should only take place if funds are already budgeted for.

The law further insists that servicing government debt should take priority when using the Consolidated Fund.

Although some State institutions have claimed that delayed funding and late invoice submissions are behind the pending bills, the Auditor-General has rejected these excuses.

She warns that such delays not only increase pressure on the budget but also lead to extra costs through penalties and interest.

According to documents presented in Parliament, some of the largest pending bills come from key government departments.

The Ministry of Health, for example, had Sh40.22 billion in unpaid bills during the 2022/23 financial year. The Ministry of Defence had Sh9.8 billion, while the National Police Service owed Sh5.5 billion over the same period.

"The bills were not settled during the period under review but were instead carried forward to the 2023/24 financial year. No satisfactory explanation was provided for non-payment of pending bills during the year they were incurred," the Auditor-General noted.

The verification team is expected to guide the National Treasury on how to address the outstanding debts.

However, MPs are now questioning whether the committee is being used to delay payments instead of providing a clear and fair resolution for suppliers and contractors.

Even as government agencies cite procedural setbacks, MPs are calling for urgent interventions to prevent more loss, frustration, and suffering among those who are still waiting to be paid for services already delivered.