Commerce

Treasury on the spot over payment of pending bills

Wednesday, March 23rd, 2022 01:06 | By
Treasury Cabinet Secretary Ukur Yatani at a past event. PHOTO/File

National Treasury was yesterday put on the spot over delayed disbursement of funds meant to offset pending bills. Submissions brought before the Planning Committee of the National Assembly revealed a mismatch in legislation meant to ensure prompt payment of governments obligations.

The Institute of Certified Public Accountants of Kenya (ICPAK) Director of Public Policy and Research, Hillary Onami said the institute is concerned that pending bills have caused pains of cash flow, auction and closure to many micro, small and medium enterprises (MSMEs) in Kenya.

“As an institute whose key mandate is to safeguard public Interest, we are dedicated to enhancing our contribution and that of our members to the national economic growth and development agenda through this piece of legislation,” said Onami during discussions on the amendments to the Prompt Payment Bill 2021.

Appearing before the committee, ICPAK noted that it is determined to ensure they seal the processing and payment of pending bills by charging interest on late payments due to challenges in exchequer releases.

When passed into law, the Bill will provide a legal framework to facilitate prompt payment for the supply of goods, works and services procured by government entities at the National or County level.

However, the Treasury through Nelson Gaichuhie, Chief Administrative Secretary dismissed the proposed amendments, saying available legislation and regulations are enough to ensure prompt payment of pending bills.

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