The government’s unpaid bills to suppliers and contractors sharply increased in 2020 to KSh322.5 billion by the end of December 2020, compared to KSh89.9 billion by the end of December 2019, a 259% increase according to a report released by the National Treasury.
State-owned corporations owed suppliers and contractors KSh 274.3 billion equivalent to 85% of the pending bills while government ministries and state departments owed KSh48.2 billion equivalent to 15% of the pending bills at the end of last year.
The Kenyan government collected KSh810.55 billion in revenue by the end of December 2020, below the KSh907.66 billion target, and KSh119 billion less than the amount collected at the end of December 2019. Revenue collection fell below the target mainly due to difficult economic environment created by the covid19 pandemic.
The total government expenditure and net lending for the period ending on 31st December 2020 amounted to KSh 1.215 trillion, KSh 44.0 billion below the targeted expenditure of KSh 1.259 trillion for that period.
Recurrent expenses, which include, foreign interest payments, pension payments, public service wages and salaries, and government operation and maintenance expenses amounted to KSh818.2 billion. Parliament and the judiciary spent KSh5.1 billion in the period under review and development expenditure amounted to KSh262.8 billion slightly below the target of KSh269.6 billion.
Kenya paid KSh141 billion to external creditors by the end of 2020, comprised of KSh80.7 billion principal payment and KSh61.1 billion interest payment as per the Treasury report. Domestic interest payments amounted to KSh186.7 billion.
