The National Treasury and the county governments will lead an authentication exercise of all the pending arrears at the two levels of government.
According to Treasury cabinet secretary Henry Rotich, the authenticated debts will be paid off within 30 days. The national and county governments owe suppliers and contractors more than Sh500 billion, with bills that are more than five years old.
During the ceremony, Mr Rotich said his ministry is in talks with the National Assembly and the Federation of Kenya Employers with regards to the deduction of contributions employees’ make towards the Kenya Mortgage Fund.
The funds will support the execution of various projects and the government’s public finance management.
Audit of Bill Arrears
Speaking at the signing of a funding agreement of Sh60 billion with the French Development Agency (AFD), CS Rotich said bill arrears that less than one year old will be audited in a 60-day exercise and verified claims will be paid within 30 days.
Earlier this year, the council of governors stopped the payment of arrears by counties to allow for an audit to be carried out.
Those that are owed money by the two governments, including commercial banks and suppliers, have for a long time complained about the delayed settlement of the debts. The delays have been caused by lack of money, improper documentation, and the 2017 elections that resulted in new county officials.
