Uhuru orders all Cabinet Secretaries not to go on holiday over pending bills


Uhuru orders all Cabinet Secretaries not to go on holiday over pending bills
President Uhuru Kenyatta chairs a Cabinet meeting on November 21, 2019. PHOTO | PSCU

In Summary

  • Acting Treasury CS Ukur Yatani, in a press release, stated that payments for goods and services procured by the National Government and County Governments has led to deterioration of financial positions of businesses, thereby having a negative impact on the economy.
  • CS Yatani, in a recent interview with Citizen TV, stated that what government departments and counties are doing to Small and Medium-sized Enterprises (SMEs) is unfair and has led to the closure of some companies.

President Uhuru Kenyatta, in his last cabinet meeting this year, ordered all Cabinet Secretaries and their Principal Secretaries not to proceed on holiday until all pending bills are paid.

Acting Treasury CS Ukur Yatani, in a press release, stated that payments for goods and services procured by the National Government and County Governments has led to deterioration of financial positions of businesses, thereby having a negative impact on the economy.

CS Yatani, in a recent interview with Citizen TV, stated that what government departments and counties are doing to Small and Medium-sized Enterprises (SMEs) is unfair and has led to the closure of some companies.

“It’s unfair that after a contractor finishes their work, you stay with money…we are getting reports that some of these people owed by the government are stressed to the extent where they take their own lives,” said the CS during the interview.

He further stated that this has had negative impact on the economy, including less than optimal levels of employment and escalation of poverty levels.

Special audit on counties by Office of the Auditor General as at June 30, 2018 indicated that out of a total Ksh.88.98 billion pending bills presented for audit, bills amounting to Ksh.51.2 billion – which amounts to 58% of the total – were reported as payable while Ksh.37.7 billion – which is 42% – lacked sufficient documentations to support services rendered or work done and therefore were not recommended for payment.

Out of the Ksh.51.2 billion of eligible pending bills, Ksh.28.57 billion had been paid as at December 18, leaving an outstanding balance of Ksh.22.71 billion.

“The methods that we have employed of delaying them funds ,we will not relent from that until they come up with a formula in which they will pay everyone owed,” added CS Yatani.

Ministries, departments and agencies have pending bills amounting to Ksh.58.2 billion out of which Ksh.43.2 billion comprises of historical bills which are undergoing audit and investigation.

The eligible bills amount to Ksh.15 billion out of which Ksh.10.8 billion have been paid in the last three months.

The National Government is committed to payment of the balance of Ksh.4.2 billion by 15th January 2020.

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Story By Faizal Ahmed
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