President William Ruto has announced that suppliers owed billions by the government will receive payments before the end of 2025, offering a major relief to businesses strained by long-standing arrears.
Speaking at State House Nairobi during a meeting with the leadership of the Kenya National Chamber of Commerce and Industry (KNCCI), the President said that out of the KSh230 billion in pending bills verified by the Pending Bills Verification Committee, KSh150 billion will be paid. Notably, 90% of these funds will go to micro, small, and medium-sized enterprises (MSMEs).
President Ruto acknowledged the damage delayed payments have had on businesses, vowing to prevent a recurrence by enforcing digital procurement systems. “Starting April 1, 2025, all bidding and awarding of government tenders will be conducted online,” he said, emphasizing that this move will ensure transparency and budget discipline.
He also encouraged a stronger public-private partnership to drive economic development, urging KNCCI members to promote savings among small businesses to reduce dependency on costly loans.
Highlighting the government’s changing approach to financing, Ruto said the KSh300 billion being used in affordable housing, fresh produce markets, and institutional housing had not been borrowed. “We are now avoiding loans and finding innovative ways to fund development,” he stated.
On the revival of the sugar sector, the President urged private sector involvement, confirming that the government is finalizing the leasing of all state-owned sugar mills.
KNCCI President Erick Rutto lauded the government’s decision to zero-rate VAT on tea packaging materials, saying it would enhance value addition and boost exports.
