NAIROBI, Kenya, Dec 16 – Pending bills owed by State corporations fell by Sh4.2 billion to Sh406.49 billion as at September 30, 2025, according to data from the Office of the Comptroller of Budget.
The National Government Budget Implementation Review Report for the first quarter of the 2025/26 financial year shows a decline from Sh410.69 billion recorded during the same period last year.
“The State Corporations’ trade payables (pending bills) include payments due to contractors and projects, suppliers, unremitted statutory and other deductions, and pension arrears for the Local Authorities Pension Trust,” the report said.
Contractors and projects accounted for the largest share of the pending bills at Sh195.85 billion, representing 37 percent of the total. This was followed by arrears owed to the National Hospital Insurance Fund at Sh39.60 billion (8 percent) and personnel emoluments arrears at Sh37.35 billion (7 percent).
The marginal improvement comes after National Treasury Cabinet Secretary John Mbadi in June outlined government efforts to clear long-standing pending bills, noting that Sh229 billion had been verified and recommended for payment.
“The continued accumulation of pending bills has strained cash flows in the economy, particularly for SMEs. This has resulted in liquidity challenges, potential business closures, job losses and additional government costs through penalties, interest charges and reduced trust with the private sector,” Mbadi said at the time.
However, the report shows that pending bills owed by Ministries, Departments and Agencies (MDAs) increased slightly to Sh118.94 billion from Sh117.67 billion during the same review period, underscoring continued pressure on public sector payment systems.
