Editorials

Craft a credible plan for paying suppliers

Treasury

The National Treasury building in Nairobi. FILE PHOTO | NMG

Parastatals paid suppliers Sh91.7 billion in the dying days of President Uhuru Kenyatta in office.

The Treasury notes show the pending bills dropped from Sh448.6 billion to Sh356.9 billion in September in one quarter.

Since these historical debts give the business community sleepless nights and parasitically hit the economy, we expect the Treasury to have a new formula.

While it is possible to link the stellar performance to political navigation in the search for votes ahead of the August 9 polls, we urge the Treasury to come up with water-tight and predictable schedule for paying companies doing business with the government.

Every business has obligations, including paying bills and repaying loans, which should not be tied to seasonal goodwill like when people in authority push for own interests.

When traders are not paid on time and the size of non-performing loans swells, for example, the economy feels the weight of poor policies that make perennial headaches like unemployment more painful.

The new administration must end the pending bills shame to lift the economy.