Budget experts fault Ruto's plan on Sh794b pending bills

The Parliamentary Budget Office (PBO) has faulted Deputy President William Ruto's plan to settle Sh794 billion worth of pending bills by the end of the current financial year. According to the PBO, the plan is not feasible given the current financial constraints and the need for a more structured approach to address the issue.

The PBO has recommended that the government set aside Sh150 billion each financial year over the next five years to settle pending bills. This amount would be used to pay off outstanding debts, including those owed to suppliers, contractors, and other creditors. The PBO believes that this approach is necessary to ensure that the government can maintain its financial stability and avoid defaulting on its obligations.

The Treasury Cabinet Secretary (CS) has said that the verification process for pending bills will be completed in March. This means that the government will have a clear picture of the total amount owed and can begin making payments accordingly. The CS also noted that the government is committed to addressing the issue of pending bills and will work with stakeholders to find a solution that is sustainable and equitable.

It is worth noting that the issue of pending bills has been a persistent problem in Kenya for several years. The country's public debt has been steadily increasing, and this has put pressure on the government's ability to meet its financial obligations. The PBO's recommendation to set aside Sh150 billion each year to settle pending bills is seen as a way to address this issue and prevent it from becoming even more severe in the future.