Government ministries, departments and agencies and county governments have been directed to clear all their pending bills by June 30.
Treasury Cabinet Secretary Ukur Yatani gave the directive while delivering the 2022/23 budgets on Thursday.
Yatani revealed that pending bills shot by Sh32.96 billion in six months.
The budget implementation review report by Controller of Budget Margaret Nyakang’o reveals that the counties’ debt stood at Sh128.94 billion as of December 31, last year.
According to the report released last week, the pending bills increased from Sh96 billion at the beginning of the financial year on July 1, last year.
“The Controller of Budget advises county governments to prioritise spending bills as a first charge in the 2021-22 budget before embarking on new financial commitments.”
Treasury CS said that continued delays in payment of pending bills to entities that provide goods and services to both National and County Governments have affected the liquidity and operations of these entities.
This, he said, has led to the closure of businesses, thus affecting the livelihoods of the suppliers.
"Though some progress was noted in settlement of these bills by the National and County Governments, we still have challenges where a number of suppliers are owed large amounts of money, " the CS said.
