𝐍𝐚𝐢𝐯𝐚𝐬𝐡𝐚 𝐂𝐨𝐧𝐬𝐭𝐢𝐭𝐮𝐞𝐧𝐜𝐲, 𝐍𝐚𝐤𝐮𝐫𝐮 𝐂𝐨𝐮𝐧𝐭𝐲

𝐓𝐡𝐮𝐫𝐬𝐝𝐚𝐲, 𝟐𝟗𝐭𝐡 𝐉𝐚𝐧𝐮𝐚𝐫𝐲, 𝟐𝟎𝟐𝟔

Lawmakers have urged the National Treasury to fast-track the clearance of pending bills, warning that delayed payments are crippling small businesses and undermining public confidence in fiscal management. The National Assembly

Speaking during a briefing by the Principal Secretary for the National Treasury, Dr. Chris Kiptoo, at the 2026 Legislative Retreat, Hon. Ichung’wah called for a transparent and time-bound roadmap to settle the KSh 458 billion owed to contractors, suppliers, and small enterprises.

“What matters most is not what we promise, but what we actually do,” he said. “Our actions must give meaning to our commitments on settling pending obligations. Otherwise, Members of Parliament are forced to intervene in individual cases because suppliers from their constituencies come pleading for help. That is not sustainable.”

The Kikuyu MP emphasized that both the National Treasury and accounting officers in ministries and county governments bear responsibility for enforcing compliance with financial laws.

He cautioned against misuse of public funds by procurement officers and reiterated that every accounting officer has a duty to ensure timely payment for goods and services delivered.

“You cannot request additional allocations without first accounting for previous disbursements,” he stated. “We cannot approve new funds while old obligations remain unsettled.”

Hon. Ichung’wah said clearing the backlog of pending bills would stimulate growth, restore business confidence, and strengthen the economy, particularly for small and medium enterprises most affected by delayed payments.

 “This opportunity must help Kenya and Kenyans,” he remarked. “Our aspirations must be matched by capacity every ministry, department, and county must ensure they have the financial ability to pay what they owe.”

𝐓𝐫𝐞𝐚𝐬𝐮𝐫𝐲 𝐎𝐮𝐭𝐥𝐢𝐧𝐞𝐬 𝐅𝐢𝐬𝐜𝐚𝐥 𝐑𝐞𝐟𝐨𝐫𝐦𝐬

In his presentation, Dr. Kiptoo briefed Members on the state of the economy, fiscal projections, and ongoing reforms under the Medium-Term Revenue Strategy. He noted that while Kenya’s economy remains resilient, with growth projected at 5.2% in 2026, fiscal space continues to shrink due to rising debt and underperformance in revenue collection.

As of December 2025, total revenues stood at KSh 1.5 trillion, KSh 136.1 billion below target, while the fiscal deficit reached KSh 518.1 billion, equivalent to 2.7 percent of GDP. The PS attributed the shortfall to slower tax receipts and compliance gaps but said reforms are underway to strengthen revenue mobilization, digitize tax administration, and enhance expenditure efficiency.

Dr. Kiptoo confirmed that the National Treasury is prioritizing the clearance of verified pending bills as part of fiscal consolidation measures. “The settlement of pending bills remains a key pillar of our liquidity management and fiscal discipline agenda,” he said.

The Treasury is also advancing reforms in State-Owned Enterprises (SOEs) through the Government-Owned Enterprises Act, 2025, which provides for mergers, dissolutions, and restructuring of 67 parastatals to cut redundancy and reduce dependence on exchequer support. Proceeds from privatisation and divestiture will be channeled into the National Infrastructure Fund and the Sovereign Wealth Fund, targeting long-term development and economic resilience.

According to Treasury, the country's public debt stood at KSh 12.05 trillion as of September 2025, comprising 44.7 percent in external debt and 55.3 percent in domestic borrowing. Dr. Kiptoo assured MPs that the Government remains committed to reducing the fiscal deficit from 5.9 percent of GDP in FY 2024/25 to 2.9 percent over the medium term through fiscal consolidation and primary surpluses.

Under the FY 2026/27 Budget, total revenue is projected at KSh 3.53 trillion (16.9% of GDP), while overall expenditure is set at KSh 4.65 trillion (22.2% of GDP). The deficit will be financed through a mix of domestic and external borrowing.

Hon. Ichung’wah “We must work together, Parliament, the Treasury, and all implementing agencies to ensure timely payments and fiscal responsibility,” Hon. Ichung’wah stated.

Lawmakers agreed that clearing the pending bills is critical to economic recovery and must be integrated into the 2026/2027 budget reforms as part of broader efforts to enhance liquidity and support SMEs.