Suppliers and contractors of the defunct Nairobi Metropolitan Service (NMS) will wait longer to receive Sh16 billion after State House said it has no money to clear the pending bills.
About Sh4.2 billion is owed to garbage collectors while the rest is distributed among firms and suppliers that undertook former President Uhuru Kenyatta’s flagship projects such as the renovation of Uhuru Park and Central Park, hospitals, roads and construction of small claims courts.
Contractors across the country are increasingly being subjected to delayed payments for their goods and services, putting many businesses in financial distress.
Some of the payments for pending bills won’t come through for months or even years, which is bad for businesses because it locks up capital for suppliers, pushing them into untold financial distress.
The persistent rise in pending bills chokes the economy by limiting liquidity flow and profitability of firms doing business with the State or private sector.
Therefore, the State House has a duty to push for the settlement of NMS bills as a lesson for prompt payment of State suppliers.