State corporations pending bills stagger at Sh400 billion

State Corporations and Semi-Autonomous Government Agencies (SAGAs) account for the largest share of the unpaid bills in government, painting a gloomy future for suppliers, a National Treasury report has revealed.

The data indicates 160 State corporations, including public universities cumulatively had a pending bill of Sh400 billion as of December  31,  2022

The pending bills have seen several individuals and entities that have been doing business with the government having their property, particularly homes, being auctioned as a result of defaulting on payments.

Suppliers and government agencies who rely on statutory deductions from staff members in the public and private sectors are the most affected.

For example, the bodies owe the National Social Security Fund (NSSF) and the National Health Insurance Fund (NHIF) Sh95.5 million and Sh72.2 million respectively.

Unpaid contractor projects also account for most unpaid bills, standing at Sh166.9 billion followed by Sh115.7 billion owed to suppliers.

Unnamed pending bills listed as ‘others’ stood at Sh82.8 billion with Sh21.8 billion pension arrears and Sh2.9 billion in unpaid staff loan deductions.

The amount also covers unremitted statutory deductions that include Sh9.2 billion Pay As you Earn (Paye) to the Kenya Revenue Authority (KRA), Sh991.2 million in staff Sacco deductions.

Accumulated bills

In the transport sector, the data lists Kenya Railways Corporation as having an accumulated a pending bill of Sh28 billion with Sh14.4 billion owed to suppliers, and Sh13.1 billion contractors among others.

Kenya Airport Authority has an outstanding bill of Sh21.4 billion followed by Kenya Ferry Service with Sh340 million owed to suppliers and contractors respectively.

In Crop Development, the agencies have a cumulative pending bill of Sh74.7 billion with Tea Board of Kenya owing suppliers a total of Sh3 billion followed by Kenya Seed Company Limited with Sh2 billion with Sh52 billion categorised as ‘others. The report indicates that Public Universities and Colleges in the country had accumulated a pending bill of Sh29.8 billion as of December 31, 2022, a National Treasury report shows.

The institutions have outstanding remittances to the Kenya Revenue Authority (KRA), the National Hospital Insurance Fund (NHIF), the National Social Security Fund (NSSF), pension schemes, insurance companies, Saccos and banks.

Statutory deductions

The data reveals that suppliers and government agencies who rely on statutory deductions from staff members in the public and private sectors are the most affected. For instance, Kenyatta University is leading the pack with an outstanding remittance of Sh7.13 billion, followed by Jomo Kenyatta University of Agriculture and Technology (JKUAT) with Sh6.73 billion.

Egerton University comes in third with Sh6.64 billion, followed by Moi University with Sh4.39 billion, Multimedia University with Sh1.3 billion, and Maasai Mara University at Sh1.22 billion.

The bills come amid a falling student population and government capitation, worsening the financial crisis of the institutions. The financial woes have seen several universities shut and learning paralyzed following a lectures’ strike due to delayed payment of allowances.

Kisii University has a pending bill of Sh824.8 million, followed by Tom Mboya University Collage with Sh 453 million, and Rongo university at Sh431 million.

The data further lists Dedan Kimathi University as having an accumulated bill of Sh353.3 million, followed by Taita Taveta University at Sh247 million, and University of Nairobi at Sh224.5 million.

Laikipia University on the other hand has a debt of Sh194 million, with South-Eastern Kenya University standing at Sh174 million.

The National Commission for Science Technology and Innovation has a pending bill of Sh173 million, followed by Maseno University at Sh115 million.

Garissa University stands at Sh81.8 million, followed by Kenya Institute of Curriculum Development (KICD) at Sh80.1 million, and Karatina University with Sh75 million.

National Polytechnics

Eldoret National Polytechnic owes remittance of Sh73.9 million, with Masinde Muliro University of Science and Technology bills standing at Sh67.7 million.

At the same time, Turkana University  owes Sh65 million, followed by Alupe university with Sh63.1 million, Kisumu National Polytechnic Sh44 million, and Cooperative University Sh38.3 million.

Learning institutions with minimal pending bills include Technical University of Mombasa with Sh24 million, Technical University of Kenya at Sh16.2 million and Kaimosi Friends College Sh7.3 million.  Others are; Koitalel Arap Samoei University College with Sh5.5 million, North-Eastern national Polytechnic with Sh5.1 million, University of Kabianga at Sh5 million, Meru National Polytechnic Sh5 million and Kenya Education Management Institute (KEMI) Sh4.6 million.