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Originally published by The Standard Business
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September 3, 2025
1d ago

State's debt to suppliers hits crippling Sh525b despite promises

State's debt to suppliers hits crippling Sh525b despite promises

The national government’s debt to suppliers surged 39 per cent in the past year to a record Sh524.84 billion, piling pressure on small businesses...

✨ Key Highlights

The Kenyan government's debt to suppliers has soared to a record Sh524.84 billion, a 39 percent increase over the past year, despite the Kenya Kwanza administration's pledges to settle arrears. This surge is detailed in a new report by the Office of the Controller of Budget, highlighting significant failures in public financial management and severely impacting small businesses.

  • The total debt increased from Sh378.09 billion a year prior, crippling cash flow for contractors and suppliers.
  • The Controller of Budget, Margaret Nyakang’o, directly links the State's failure to pay bills to widespread business distress, including layoffs and closures, undermining the administration’s "Bottom-Up" economic agenda.
  • The State Department for Roads leads with Sh103.69 billion in unpaid bills, followed by the National Treasury owing Sh71.34 billion, and the State Department for Housing and Urban Development with Sh76.11 billion.

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