President William Ruto on Friday chaired a Cabinet meeting at State House, Nairobi, where the Cabinet approved the settlement of 28,726 verified government pending bills worth KSh23.74 billion for claims of KSh50 million and below.
The payments cover 98 per cent of the 29,257 claims recommended for settlement after a review by the Pending Bills Verification Committee. The committee had received 115,617 claims valued at KSh664.8 billion and recommended 29,257 claims worth KSh155.34 billion for payment.
Some of the suppliers and contractors cleared under the decision have been waiting for payment since 2005.
Priority for MSMEs and progressive settlement
The National Treasury will oversee implementation. Priority will be given to micro, small and medium enterprises (MSMEs), particularly those owned by women, youth and persons with disabilities.
The Cabinet said the payments are meant to ease cash-flow pressure on businesses, protect jobs and restore confidence among suppliers. Verified claims above KSh50 million will be settled progressively.
The decision follows earlier clearance of more than KSh80 billion in pending bills in the roads sector.
Kenya Airways financing
Cabinet also approved USD350 million in shareholder financing for Kenya Airways, subject to the necessary approvals, and backed a proposal to convert KSh122 billion in existing government loans and accrued interest into an equity-qualifying tradable instrument. The measures are intended to strengthen the national carrier’s balance sheet and support its turnaround.
Hospital expansion
In health, the Cabinet approved construction of a new 2,000-bed Moi Teaching and Referral Hospital and a 1,000-bed Level Six hospital in Mombasa. It also approved expansion of 13 Level Five hospitals by 300 beds each, in Mandera, Marsabit, Turkana, Kilifi, Embu, Nakuru, Laikipia, Migori, Nyamira, Baringo, Bomet, Narok and Kisii.
The programme is aimed at increasing capacity, easing congestion at referral facilities and bringing specialised care closer to communities.
A separate KSh8 billion partnership with France was endorsed to establish and equip specialised head and neck surgical units at Kenyatta National Hospital, Moi Teaching and Referral Hospital and the University of Nairobi Dental Hospital.
Thwake Dam
An additional KSh12.83 billion was approved to complete the Thwake Multipurpose Dam. Once finished, the dam is expected to supply 150,000 cubic metres of water a day to more than 1.3 million people in Makueni and Kitui counties, including Wote town and Konza Technopolis.
Ebola preparedness
The meeting also reviewed national preparedness for Ebola following an isolated imported case, as part of wider public-health readiness measures.
Other decisions from the session included adoption of the Kenya National Energy Compact and a Sessional Paper on Transforming Education, Training and Research.