In a major relief to struggling businesses, President William Ruto has assured that the government will clear a significant portion of its outstanding supplier debts by the close of 2025.
Speaking during a meeting with national leaders from the Kenya National Chamber of Commerce and Industry (KNCCI) at State House Nairobi, President Ruto revealed that KSh230 billion worth of pending bills have been scrutinized and verified by the government’s Pending Bills Verification Committee. Out of this, the government plans to settle KSh150 billion within the year.
What’s more promising, he said, is that a whopping 90% of the funds will go directly to micro, small, and medium-sized enterprises (MSMEs) businesses that have borne the brunt of prolonged payment delays.
“Pending bills have been a burden on many businesses,” the President said. “We are making reforms to ensure such situations don’t recur.”
One key reform: digitizing procurement. Starting April 1, 2025, the government will shift all tendering processes online.
“Going forward, bidding and awarding government tenders will be done online,” President Ruto declared. The move, he explained, is aimed at enhancing transparency and ensuring that no contracts are awarded without proper budget allocations.
Beyond paying debts, Ruto emphasized the importance of a strong partnership between government and private enterprise in driving Kenya’s economic development. “We are working with all partners to nurture, build, and support local enterprises,” he said. “This will enhance enterprise profitability and the country’s progress.”
The President also urged KNCCI members to champion a culture of savings among small businesses. Instead of relying on expensive loans, he said, firms should tap into locally generated capital.
“I want to encourage the private sector to facilitate savings to use it as an alternative when investing,” he advised.
Highlighting the government’s efforts to finance development sustainably, Ruto noted that projects such as affordable housing, fresh produce markets, and institutional housing totaling KSh300 billion have all been funded without taking on debt.
