- KSh150 billion of verified pending bills to be paid, with 90% directed to MSMEs.
- Government tenders to shift fully online from April 1, 2025.
- Ruto promises improved transparency and timely payments for businesses.
- Public-private partnerships and saving culture among SMEs strongly encouraged.
- KSh300 billion development funding achieved without loans.
- Leasing of sugar mills underway to revive the sector.
- KNCCI welcomes zero VAT on tea packaging to enhance exports.
President William Ruto has confirmed that the government will settle KSh150 billion out of the verified KSh230 billion in pending bills. He made this announcement at State House, Nairobi, during a session with the Kenya National Chamber of Commerce and Industry (KNCCI). A large share—90%—of the funds will benefit micro, small, and medium-sized enterprises (MSMEs), offering a lifeline to many struggling businesses.
Digital Shift for Government Procurement
To stop the backlog from repeating, Ruto revealed a major policy shift in how government tenders will be handled. From April 1, 2025, all procurement processes will move online. This digital system is aimed at making procurement more open, accountable, and within the limits of set budgets.
“No more manual deals. We are moving everything online to protect suppliers and public money,” he stated.
Private Sector Urged to Join Forces with Government
The President also emphasized the need for a stronger working relationship between the public and private sectors. He called on business leaders to help build a savings culture among small enterprises to reduce their heavy reliance on expensive loans.
New Model for Development Financing
Ruto explained that the government has already started using fresh financial models. He said that KSh300 billion allocated to projects like affordable housing, market construction, and institutional housing was not obtained through loans. According to him, this approach is a deliberate effort to keep the country from sinking deeper into debt.
Sugar Industry Set for Fresh Start
Turning to the troubled sugar industry, the President announced that the government is finalizing plans to lease all public sugar factories. He called on investors and businesses to take part in the sector’s recovery, noting that private sector input is vital in turning things around.
KNCCI Applauds Support for Tea Exporters
KNCCI President Erick Rutto praised the government’s latest tax move to remove VAT on tea packaging materials. He noted that this would not only reduce costs for tea processors but also improve the global competitiveness of Kenya’s tea through better value addition.
