Taxpayers to bear Sh25bn fines from delayed government bill payments
Nyakang’o observed that the piling up of pending bills has put businesses, especially small and medium-sized enterprises, under severe pressure as their cash flow is restricted by long-delayed payments.
Kenyans will shoulder an extra burden of Sh25.3 billion in penalties following prolonged delays in settling pending bills by the national government, Controller of Budget Margaret Nyakang’o has disclosed.
In her full-year report for the 2024–2025 financial year, Nyakang’o said the penalties are charged on top of the original pending bills, meaning taxpayers will eventually pay more because the Treasury failed to clear debts in good time.
She noted that pending bills rose by zsh9 billion within a single year, making the problem one of the most pressing financial concerns for the government.
The Ministry of Roads and Transport, headed by Cabinet Secretary Davis Chirchir, tops the list of government entities with the highest liability.
It faces penalties of Sh21.3 billion in addition to its original debt of Sh121.8 billion. Agencies under the ministry, including the Kenya Rural Roads Authority (KeRRA), the Kenya National Highways Authority (KeNHA), and the Kenya Urban Roads Authority (KURA), are among those with the largest accumulated interests.
The Ministry of Energy has also run up penalties amounting to Sh1 billion through the National Oil Corporation of Kenya and the Kenya Electricity Generating Company (KenGen).
The Ministry of Health carries Sh1.5 billion in penalties under the Kenya Medical Research Institute (KEMRI), while its agencies, including the Kenya Medical Supplies Authority (KEMSA), Kenyatta National Hospital, Kenyatta University Teaching and Referral Hospital, and Moi Teaching and Referral Hospital, collectively owe suppliers Sh54 billion.
The Ministry of Water and Sanitation, through Tanathi Water Works Development Agency, has accumulated Sh1.2 billion in penalties.
Nyakang’o observed that the piling up of pending bills has put businesses, especially small and medium-sized enterprises, under severe pressure as their cash flow is restricted by long-delayed payments.
She warned that the delays have led to layoffs, scaling down of operations, and in some cases, complete shutdowns of affected institutions.
She has urged the National Treasury to speed up the verification process of all pending bills and ensure eligible suppliers are paid without further delays.
