The new President, Dr William Ruto, has said that the government owes various businesses a whooping Ksh 600 billion in pending bills for supplies made to the government.
Speaking after his inauguration in Kasarani Stadium on September 13, 2022, Dr Ruto stated that the government would this year spend a significant chunk of its revenues on servicing debt at the expense of other areas.
“This year, we will spend 60 per cent of our revenues to service our debt. We are faced with Ksh 600 billion in pending bills for goods and services supplied to the government.” Ruto said.
He stated that the pending bills had rendered most businesses in the country dysfunctional, calling for the need to settle the bills to help suppliers get back to work.
“This situation must be corrected. I am aware that many individuals, families and their companies have been driven to ruin and forced to shut down over government unpaid bills,” he stated.
Suppliers can now breathe a sigh of relief following the president’s promise to offer guidelines on the resolution of the payment issues between the government and the suppliers in the near future. He said that he is committed to repaying the loans to foster better economic performance.
“We shall give priority to the expeditious resolution of our pending bills so that the government can meet its
obligations and facilitate better economic performance. In the coming weeks, we shall advise government creditors on the mechanism for the resolution of their outstanding payments.” Ruto said.
The president’s speech was dominated by steps that his government has prioritised to improve the economy, most of which were part of his campaign manifesto.
Ruto stated that he was in the process of facilitating the reinstatement of the Port of Mombasa, which had been moved by his predecessor Uhuru Kenyatta to Naivasha, saying that the move would create many jobs for Kenyans.
“This afternoon, I will be issuing instructions for clearing of all goods and other attendant operational issues to revert to the port of Mombasa. This will restore thousands of jobs in the city of Mombasa.” the president said.
Ruto also made references to the Kenya Revenue Authority, stating that he would make it more professional and efficient to enhance the performance of its duties.
Email your news TIPS to firstname.lastname@example.org