The latest official data paints a grim picture of a situation that is going from bad to worse, with arrears rolled over to this financial year ended June 30 being at least Sh448.05 billion.
Treasury Principal Secretary Julius Muia says they were forced to ease some measures to ensure timely settlement of the debts and remit statutory deductions after the pandemic hurt income streams of the State agencies.
Pending bills continue to be a source of pain for State agencies that owe suppliers billions of shillings.
The latest official data paints a grim picture of a situation that is going from bad to worse, with arrears rolled over to this financial year ended June 30 being at least Sh448.05 billion.
Treasury Principal Secretary Julius Muia says they were forced to ease some measures to ensure timely settlement of the debts and remit statutory deductions after the pandemic hurt income streams of the State agencies.
However, Covid-19 shouldn’t be used as an excuse for not paying up. Pending bills had been dogging public institutions and counties long before the pandemic struck.
What the Treasury needs to do is fix the corruption in procurement that has created opportunity for rent-seeking, and made doing business with the government a nightmare to some suppliers and a cash cow to others.
We urge the Treasury to consider the ability to pay in easing the rules and only allow the cash-strapped State agencies and counties to make late payments. However, this should come with a clear plan to settle pending debts based on the revenue they receive.
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