Connect with us

Hi, what are you looking for?

top
Capital News
National Treasury.

BBI

How BBI intends to end delayed payments for government suppliers

NAIROBI, Kenya, Oct 22 – Suppliers doing business with the government will no longer have to chase payments for months or even years if a proposal in the Building Bridges Initiative (BBI) is adopted.

Even though government ministries and departments promise to pay suppliers within a month or two on delivery, suppliers always wait for several months before they are paid, a major setback in business since most rely on loans from financial institutions.

In the end, some end up losing colateral or fail to make profit due to the lengthy payment period.

Some suppliers like at the Kenya Prisons Service have gone for more than five years without payment, even after proving that they rendered services or delivered goods. The government has embarked on the process of verifying genuine suppliers for payment.

Stories are told of some of the suppliers who have committed suicide or died of depression after losing their prime properties to auctioneers after placing them for colateral for capital.

The BBI recommendation wants to bring this trend to and end, proposing payment within 60 days to all suppliers.

And to address disputes, the Bill calls for establishment of a Public Invoices Settlement Tribunal, that will be tasked with hearing appeals on any decision stopping the payment of an invoice.

The five-member tribunal will be led by a Chairperson “with the qualifications of a Judge of the High Court of Kenya, nominated by the Judicial Service Commission.”

Advertisement. Scroll to continue reading.

“A decision of the Tribunal shall be enforced by an accounting officer of a public entity to whom it is directed,” reads the report that was presented to President Uhuru Kenyatta and his handshake partner Raila Odinga in Kisii on Wednesday.

Click to comment
Advertisement

More on Capital News

World

Lagos, Nigeria, Dec 2 – Police in Nigeria have rescued 10 people, including four children, four pregnant women and two other women from an illegal...

Kenya

NAIROBI, Kenya, Dec 2 – Public Service, Youth and Gender Affairs Cabinet Secretary Margaret Kobia says the COVID-19 pandemic has contributed to an increased...

BBI

NAIROBI, Kenya, Dec 2 – Deputy President William Ruto held a meeting with MPs and Governors allied to hi Wednesday, in what insiders described...

World

San Francisco, United States, Dec 2 – Donald Trump has threatened to veto a major military funding bill unless Congress abolishes a liability law protecting...

Capital Health

London, United Kingdom, Dec 2 – Britain on Wednesday became the first Western country to approve a Covid-19 vaccine for general use as it announced...

World

Beijing, China, Dec 2 – A sexual harassment case against a powerful Chinese media figure began in Beijing on Wednesday, with his accuser calling...

Corona Virus

Paris, France, Dec 2 – 2020 was a year turned upside-down by the novel coronavirus. But with the prospect of several vaccines coming online...

Capital Health

NAIROBI, Kenya Dec 2 – The National Treasury and Ministry of Health have 21 days to remit Sh500 million to the National Hospital Insurance...