Pending payments verification group approves Ksh236B funds –Treasury PS
Friday twenty first February, 2025 06:20 AM|
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The Pending Bills Verification Committee has permitted the payout of Ksh236 billion of the over Ksh600 billion inherited by the Kenya Kwanza administration.
Chris Kiptoo, Principal Secretary for the National Treasury and Economic Planning mentioned the federal government is making important progress in addressing the pending payments.
“A significant portion of these funds will go towards settling dues owed to small business suppliers and road contractors, easing financial pressures on enterprises that rely on government contracts,” he mentioned.
Kiptoo who was talking on the DTB Economic and Sustainability Forum in Nairobi, expressed optimism about Kenya’s financial trajectory.
“When I started, it was very hard, and I had many sleepless nights. Now the worst is over, but the future is brighter. We have a resilient economy, diversified, and that’s how we come out of shocks,” he mentioned.
The PS additionally mentioned the soundness of Kenya’s macroeconomic setting stays a precedence, with the federal government persevering with its partnership with the International Monetary Fund (IMF) to make sure fiscal self-discipline and financial resilience.
Kiptoo mentioned the ministry will give attention to key development areas within the upcoming monetary yr, and stimulate cash for the non-public sector to spur development and financial growth.
With emphasis on bolstering agricultural output and exports, the ministry has outlined a strategic give attention to key industries together with tea, edible oil, cotton, leather-based, dairy, pure sources, constructing supplies, and the blue financial system.
Kiptoo mentioned these sectors are poised to drive financial enlargement and create jobs, enhancing Kenya’s commerce stability and income era. To stimulate lending to the non-public sector, the federal government plans to switch the Credit Guarantee Scheme to a State-owned entity.
This scheme, presently operated in collaboration with seven banks, ensures partial protection of defaults, thereby encouraging extra banks to increase credit score to companies, notably small and medium enterprises (SMEs).
The implementation of the Single Treasury Account, e-procurement coverage, zero-based budgeting, and public-private partnerships, are being prioritized to boost effectivity and transparency in public finance administration.
Meanwhile, the banking sector can also be optimistic concerning the nation’s financial outlook with DTB projecting elevated lending to people and small companies because the nation stabilises.
DTB Kenya CEO Murali Natarajan emphasised the financial institution’s confidence in Kenya’s restoration, noting that banking sector credit score might double throughout the subsequent decade from the present $32 billion if the present development momentum is sustained.
“When I look at the resilience of the economy and the track record of having dealt with so many challenges, that gives me immense confidence that I feel very confident about going forward,” he mentioned.