Payment hope for 65,627 bills as State scrutinizes Sh518bn debt

The government's review of pending bills, totaling Sh518.7 billion, continues to progress as it aims to clear payment delays for contractors, with scrutiny nearing completion.

Since its formation in 2023, the verification committee has been working diligently to analyze 65,627 pending bills that span a period of over 17 years, from June 1, 2005, to June 30, 2022.

While the committee’s work offers hope to contractors who have long awaited payment, it also highlights challenges, particularly regarding unverifiable and fictitious claims.

The State has been under pressure to ensure that only legitimate bills are approved for payment.

According to Treasury Cabinet Secretary John Mbadi, "Since its inauguration, the Committee has analysed a total of 65,627 pending bills, which are valued at Sh518.7 billion. The analysis of these 14 bills was conducted based on their status, sectors, categories, and recommendations for settlement."

The verification process is crucial to resolving the long-standing issue of payment delays that have crippled many contractors, especially those working with state corporations.

These delays have forced many businesses to freeze expansion plans and hiring, creating a ripple effect throughout the economy.

The total value of the pending bills covers claims across various sectors, but the majority of the bills are held by state corporations.

Less than a quarter of the pending bills belong to ministries, departments, and other entities.

The verification committee’s work is meant to separate legitimate claims from those suspected of being fabricated, with many contractors fearing that they may miss out on payments as a result of this scrutiny.

The number of contractors awaiting payment has significantly increased, with figures rising from 94,997 in September to 114,376 as of now.

This increase reflects growing frustration among contractors, many of whom have been waiting for payments that they are legally owed.

In a report presented before Parliament, Treasury disclosed that approximately Sh200 billion worth of bills had been rejected as they were deemed suspicious.

This indicates that the government is committed to preventing fraudulent claims, a process that has sparked mixed reactions within the contractor community.

With more than three-quarters of the pending bills coming from state corporations, the Treasury is particularly focused on these claims.

While the scrutiny has created hope for payment, the ongoing uncertainty over the fate of these bills has left many contractors in financial limbo.