President William Ruto has taken a decisive step to address the Sh600 billion crisis in pending bills by appointing former Auditor-General Edward Ouko to head the newly inaugurated Pending Bills Verification Committee.
Ruto turns to ex-Auditor General Edward Ouko to solve Sh600 billion crisis
President William Ruto appoints former Auditor General Edward Ouko
In a statement at State House in Nairobi on Tuesday, President Ruto emphasized the importance of resolving the sticky issue in a just and fair manner.
He underscored that it is not the government's role to drive enterprises to ruin but to facilitate their optimal performance.
"We must restore confidence in the people who do business with the government by paying them in time," President Ruto stated, highlighting the significance of timely payments to stimulate economic revival and inject much-needed capital back into production.
The Pending Bills Verification Committee, chaired by Edward Ouko, is tasked with addressing genuine public sector pending bills as a priority in the government budget.
President Ruto revealed that the government owes its suppliers, predominantly small and medium-sized enterprises, a substantial amount exceeding Sh600 billion.
He added that settling these dues in a timely manner will contribute to fostering discipline in the country's fiscal management and invigorate economic activities.
Devastating impact of delayed payments on businesses and individuals
The spiraling crisis of delayed payments has exacted a heavy toll on many businesses, forcing some to shut their operations.
As businesses succumb to financial pressures and close their doors, the immediate consequence has been the loss of jobs.
Employees, often dependent on these enterprises for their livelihoods, find themselves have found themselves facing unemployment.
Individuals who took loans to invest in trading or supplying the government now find themselves on the brink of financial ruin.
The inability to recoup funds from delayed payments has forced some to face auctions of their assets, a distressing outcome with far-reaching implications for personal and family well-being.
Education, healthcare, and other essential aspects of life become compromised, perpetuating a cycle of hardship.
Entrepreneurs who took the risk to engage in government contracts now find themselves caught in a quagmire of debt and financial uncertainty.
The dream of fostering economic growth through business initiatives has turned into a nightmare of survival.
This not only hampers future financial opportunities but also adds another layer of difficulty for individuals trying to rebuild their lives.
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