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Shame As List Of Ministries and State Agencies Exposed Over Billions Owed to Suppliers

BY Soko Directory Team · February 27, 2026 09:02 am

By Robai Ludenyi

A fresh report has laid bare the extent of delayed payments by several government ministries and state agencies, exposing how billions of shillings owed to suppliers continue to cripple businesses across the country.

The findings reveal that some of the worst offenders are key ministries and parastatals that routinely contract private companies for goods and services but fail to pay them on time. The unpaid bills, in some cases stretching for months or even years, have pushed many small and medium-sized enterprises to the brink of collapse.

For many business owners, these are not just numbers on paper. They represent unpaid bank loans, frozen operations, laid off workers, and families struggling to survive. Suppliers say they delivered goods in good faith after signing legally binding contracts, only to be met with endless promises, bureaucratic delays, and silence.

Some ministries have accumulated huge pending bills despite receiving budget allocations. The situation raises serious questions about financial discipline, accountability, and transparency in public spending. Business owners argue that while the government is quick to enforce taxes and penalties, it does not hold itself to the same standard when settling its own debts.

The ripple effects are severe. When suppliers are not paid, they default on loans borrowed to execute those government contracts. Banks tighten lending conditions. Workers lose jobs. Projects stall. The broader economy suffers. In many cases, small firms that depended heavily on government contracts have completely shut down.

The delays are often blamed on budget shortfalls, missing documentation, or pending approvals, but suppliers insist that these explanations have become routine excuses. What frustrates many entrepreneurs is the lack of clear timelines and accountability mechanisms to guarantee payment.

This is not merely an administrative issue. It is a matter of economic justice. When the state fails to pay for services already delivered, it shifts the financial burden onto ordinary citizens who invested their savings, time, and labour into fulfilling those contracts.

Read Also: Compliance Is Killing Kenyan Enterprise: Parliament Lit The Fire, Corruption Is Pouring The Fuel

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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