Supplier arrears in parastatals up Sh108bn in six months

Supplier arrears in parastatals up Sh108bn in six months

Economy

Supplier arrears in parastatals up Sh108bn in six months

Thursday December 09 2021 treasury

The National Treasury building in Nairobi. PHOTO | SALATON NJAU | NMG

BDgeneric_logo By CONSTANT MUNDA
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Summary

  • Pending bills by the State corporations jumped to Sh371.5 billion in September from Sh262.9 billion in March, provisional data from the Treasury show.
  • Small and medium-sized businesses are feeling the financial pain that comes with years of late payments on everything from PR campaigns to supplies of construction materials.
  • The late payments are in turn hitting the financial sector, where non-performing loans have jumped this year to their highest level in more than a decade.

Kenya’s parastatals, including public universities, accumulated Sh108.6 billion in additional arrears to contractors and suppliers in six months to September, signalling their worsening cash positions.

Pending bills by the State corporations jumped to…

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