Pending Bills in Kenya

The Kenyan government is grappling with a long-standing problem of unpaid invoices to suppliers and contractors, known as "pending bills." These debts primarily burden small and medium-sized enterprises (SMEs) and, despite partial payments, have accumulated to hundreds of billions of shillings by March 2026. The Kenyan government's unpaid invoices to suppliers totaled 468.48 billion Kenyan shillings (KSh) in December 2025. According to a report by the Budget Control Office, nearly 79% of the arrears were owed to state-owned enterprises and government agencies. The debts mainly affect suppliers in the construction, utilities, and services sectors; state corporations such as KeNHA, KeRRA, and Ketraco are among the top debtors. Many of the invoices stem from recurrent expenditures such as salaries, electricity, and rent, which have been overdue for years. Road contractors recently received 177 billion KSh, reviving 6,000 km of stalled projects. Most of the overdue payments in the education sector are from state universities, most notably the University of Nairobi with 15.96 billion KSh and Kenyatta University with 14.32 billion KSh. Jomo Kenyatta University of Agriculture and Technology (JKUAT), Moi University, and Egerton University also have significant payment arrears. Health institutions such as the Department of Social Welfare and Kenyatta National Hospital also report substantial arrears. Energy providers like the Kenya Power and Lighting Company and the Kenya Electricity Transmission Company also have large outstanding payments related to infrastructure projects. A Pending Bills

Verification Committee has approved 255 billion KSh for payment, of which 80 billion KSh in the road sector has already been settled; the remainder will follow in the coming fiscal years. Treasury PS Chris Kiptoo promised swift disbursements, including an e-procurement system to prevent delays. Lawmakers are calling for its inclusion in the 2026/2 budget. Thousands of SMEs face insolvency, loan defaults, and job losses due to years of waiting since 2005. The private sector warns of economic damage and non-performing loans at banks. Despite progress, doubts about implementation persist. https://kenyanwallstreet.com/universities-state-agencies-debt