Nairobi, May 10 : Kenyan President William Ruto has assured suppliers owed hundreds of billions of shillings by the government that they will receive their payments before the end of the year.
Speaking at State House in Nairobi on Friday, Ruto revealed that the Pending Bills Verification Committee had verified Sh230 billion in outstanding debts.
Of this amount, the government has committed to clearing Sh150 billion, with 90 per cent of the funds to be directed to micro, small, and medium enterprises (MSMEs).
This announcement comes at a time when the issue of pending bills has been severely affecting businesses across the country.
The President acknowledged the negative impact these unpaid debts have had on businesses, especially smaller enterprises.
He emphasised that the government’s efforts to resolve the issue would bring much-needed relief to businesses.
“The government is committed to paying off Sh150 billion of the Sh230 billion in verified pending bills. We understand the importance of clearing these debts to ensure businesses can thrive, especially our micro, small, and medium enterprises,” President Ruto said.
To prevent future accumulation of similar debts, Ruto announced that the government has moved procurement processes to a digital platform starting April 1, 2025.
This transition, he explained, would ensure better oversight and prevent situations where entities procure goods and services without the necessary budgets.
“Going forward, bidding and awarding government tenders will be done online,” Ruto said, reinforcing the government’s commitment to transparency and efficiency in public procurement.
During his speech, the President also highlighted the importance of collaboration between the public and private sectors to accelerate the country's development. He called on private sector players, especially those in local enterprises, to work closely with the government to enhance profitability and contribute to national progress.
“This partnership will enhance enterprise profitability and the country’s overall development,” Ruto said.
In a bid to further support the growth of local businesses, the President encouraged members of the Kenya National Chamber of Commerce and Industry to promote savings as an alternative to expensive loans for investments. He noted that this would help small businesses access capital more easily, fostering growth without the burden of high-interest loans.
“I want to encourage the private sector to facilitate savings to use it as an alternative when investing,” he said.
Kenya’s economy has demonstrated resilience amid global headwinds, with GDP growth moderating at around 4 percent in the first quarter of 2025. Inflation, while elevated at roughly 15 percent, is on a downward trend following tighter monetary policy.
The “Big Four” agenda—focusing on manufacturing, universal health coverage, affordable housing, and food security—has galvanized public‑private collaboration, yielding over 200,000 housing units, significant advances in local garment production and increased investor interest in the country.
While the prospects are bright, challenges remain. Currency volatility can erode returns on foreign‑currency financing, prompting Kenya to deepen its domestic forward‑hedging markets. Governance and procurement transparency are critical to ensuring cost‑efficiency and public trust.
President William Ruto has reaffirmed his commitment to procurement transparency and empowering businesses and investors in the country.
The Finance Bill, 2025, seeks to harness that momentum by tightening loopholes—rather than piling on new taxes—and streamlining the system so that every shilling collected goes to visible public goods such as health, education, and infrastructure.
The Bill’s architects emphasize surgical precision: simplifying refund processes that have in the past been exploited through inflated claims, rationalizing exemptions that carved away billions in tax expenditures, and modernizing digital filing and compliance to cut red tape.
By focusing on efficiency and enforcement, the government plans to raise an additional Ksh 75 billion in net revenue without raising headline rates—a crucial distinction as ordinary Kenyans grapple with rising living costs.
As the Finance Bill travels to the National Assembly and Senate, lawmakers will have the opportunity to propose amendments and hear testimonies from the Kenya Revenue Authority, the Ministry of Finance, private-sector representatives and civil-society delegates.
Given the improved consultations this time around—industry forums, county-level public participation exercises and targeted stakeholder workshops—the administration is optimistic about smooth passage. Yet the pressure points are clear: ensuring that KRA is adequately resourced to enforce new rules, confirming that the automatic reliefs function seamlessly in payroll systems, and verifying that small businesses can access expensing provisions without onerous documentation.
Approving the Finance Bill, 2025, is only the opening chapter in Kenya’s quest to live within its means while spurring bottom-up growth. In practice, success will hinge on swift operational roll-out at KRA, robust county-level management of emergency funds, and transparent tracking of social impact.
If executed well, the Bill could unlock tens of billions in additional revenues, catalyze investment in rural areas, and strengthen the social safety net for retirees and small-business owners.
