Nairobi, Kenya – August 26, 2024: Deputy President Rigathi Gachagua has announced a substantial reduction in the national government’s pending bills, marking a positive step in efforts to stabilize Kenya's economy. Speaking at the opening of the 24th Ordinary Session of the Intergovernmental Budget and Economic Council (IBEC) meeting at his official residence in Karen, Gachagua highlighted the government’s commitment to resolving these outstanding financial obligations.
Significant Reduction in Pending Bills
According to Gachagua, the National Treasury successfully reduced the national government’s pending bills from Sh622.82 billion in June 2023 to Sh516.27 billion by June 30, 2024. This reduction of over Sh100 billion in the last financial year represents a significant achievement in the government’s ongoing efforts to address financial backlogs that have been impacting the economy.
Gachagua emphasized that while progress has been made, the issue of pending bills continues to be a challenge that requires sustained effort and collaboration between national and county governments.
Progress at the County Level
In addition to the national government’s efforts, initial reports from 26 counties show a promising reduction in pending bills from Sh43.6 billion to Sh33.9 billion as of June 30. Gachagua acknowledged this improvement and urged county governments to work closely with the Controller of Budget to implement the necessary measures to further reduce these bills through the budgetary process.
"We acknowledge this improvement, and I urge county governments to collaborate closely with the Controller of Budget to implement recommended measures to effectively address this issue through our budgetary process," Gachagua said during the IBEC meeting.
Impact on the Economy
Pending bills have long been a source of concern for the Kenyan economy, as they can hinder service delivery, delay projects, and negatively affect businesses that rely on timely payments from the government. The reduction in these bills is a crucial step towards restoring confidence in the government’s financial management and ensuring that the economy continues to grow.
The Deputy President also reassured stakeholders that the government remains committed to expediting the resolution of high pending bills, recognizing that their prompt settlement is essential for the overall health of the economy.
Looking Ahead
As the government continues its efforts to clear pending bills, the focus will be on ensuring that both national and county governments maintain disciplined financial practices. Gachagua’s call for collaboration between the different levels of government underscores the importance of a unified approach to addressing this issue.
The 24th IBEC meeting, attended by key government officials and economic stakeholders, serves as a platform for discussing and implementing strategies to improve Kenya’s fiscal management. With continued efforts and cooperation, the government aims to further reduce pending bills and enhance the country’s economic stability.
