President William Ruto has announced that all procurement in government institutions will be done online.
In a statement by State House dated Friday, May 9, Ruto added that the procurements will be awarded to the bidding winners on the online platform launched on April 1.
Additionally, to tame incidents of pending bills, all institutions will only procure goods for which they have a budget.
"Speaking when he hosted the leadership of the Kenya National Chamber of Commerce and Industry from across the country at State House Nairobi on Friday, President Ruto regretted that pending bills were hurting businesses, saying the government has moved procurement to a digital platform beginning April 1, 2025, to avert situations where entities procure for goods and services without the requisite budgets," read the statement in part.
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Additionally, the President announced that the government would be settling part of the pending bills that had been verified.
"The President said Ksh230 billion of debts owed to suppliers have been verified by the Pending Bills Verification Committee. Of these, the government will pay Ksh150 billion," read the statement in part.
"He pointed out that 90 per cent of the funds will be paid to micro, small and medium enterprises."
Payments of the pending bills will be made by the end of December.
The payments of the outstanding bills will help many businesses which have been facing financial challenges, given the arrears owed to them by the government.
Notably, some of the businesses have been unable to meet their debt obligations by the banks after the government failed to pay them for goods and services rendered.
