CoB warns of pending bills, identifies key contributors to Sh25 billion fines
The Ministry of Roads and Transport is the largest contributor to the accumulated fines, with penalties totalling Sh21.3 billion on top of its pending bills of Sh121.8 billion.
Controller of Budget Margaret Nyakang'o has warned that delays in clearing government bills will cost Kenyan taxpayers an additional Sh25.3 billion in penalties.
The full-year 2024–2025 report indicates that these fines are charged on top of the original pending bills, meaning the public will bear extra costs due to the Treasury’s slow processing.
More To Read
- State agencies owe Sh6 billion in unpaid statutory deductions, Treasury warns
- Controller of Budget report flags widespread delays in government projects, weak target monitoring
- Debt servicing limits Kenya’s ability to fund development – CoB
- Mounting pending bills choking SMEs, risking jobs - CoB Margaret Nyakang’o
- Penalties on pending bills surge by Sh3.7 billion, hitting Sh25.28 billion
- State House drains Sh3.6 billion in 42 days, raising alarm over reckless spending
Pending bills alone increased by Sh9 billion over the past year, highlighting the government's growing financial strain.
The Ministry of Roads and Transport is the largest contributor to the accumulated fines, with penalties totalling Sh21.3 billion on top of its pending bills of Sh121.8 billion.
State agencies under the ministry, including Kenya Rural Roads Authority (KeRRA), Kenya National Highways Authority (KeNHA), and Kenya Urban Roads Authority (KURA), account for the majority of these charges.
Other government sectors have also been hit by penalties. The Ministry of Energy has accrued Sh1 billion through the National Oil Corporation of Kenya and the Kenya Electricity Generating Company (KenGen).
The Ministry of Health faces fines of Sh1.5 billion through the Kenya Medical Research Institute (KEMRI), while its agencies, such as KEMSA, Kenyatta National Hospital, and Kenyatta University
Teaching and Referral Hospital and Moi Teaching and Referral Hospital collectively owe Sh54 billion to suppliers.
The Ministry of Water and Sanitation, through the Tanathi Water Works Development Agency, has accumulated Sh1.2 billion in penalties.
Nyakang’o said the accumulation of pending bills has restrained business cash flows, resulting in liquidity challenges, particularly for small and medium-sized enterprises (SMEs), which are forced to endure long waits for overdue payments.
According to her, the pending bills menace has caused scaling back of operations, layoffs of workers, and shutdowns of affected institutions.
To address the problem, the Controller of Budget urged the National Treasury to fast-track verification of all pending bills of the national government and expedite the payment of eligible pending bills.
Top Stories Today
