Operation Linda Jamii, a civil society lobby group, has petitioned the Nakuru High Court to suspend the national budget-making process until the government addresses the severe crisis of pending bills, totaling nearly KSh 700 billion.
In court documents filed by Professor Fred Ogola and obtained by The Weekly Vision, the group argues that the pending bills impose a severe burden on millions of Kenyans, particularly small and medium-sized enterprises (SMEs), contractors, and households. The government’s failure to pay suppliers has triggered a national credit emergency, with approximately 19 million adults, two-thirds of Kenya’s adult population, listed as defaulters by Credit Reference Bureaus (CRBs).
“As of June 30, 2024, pending bills reached KSh 698.27 billion, including KSh 516.27 billion owed by the national government and KSh 182 billion by county governments,” Prof. Ogola states in the application.
The national government’s arrears grew by KSh 29.4 billion in the three months ending June 2024. However, the 2025 Budget Policy Statement (BPS), dated February 13, 2025, includes no provisions or timeline for settling these debts.
The Treasury’s proposal to borrow KSh 60 billion for the Hustler Fund, which supports micro, small, and medium enterprises, contradicts the plight of businesses crippled by delayed government payments.
“It is economically irrational and morally unacceptable to incur additional debt while ignoring existing obligations,” Prof. Ogola argues.
The petition criticizes the Council of Governors, the fourth respondent, for omitting plans to address county-level pending bills in their budget statement, despite prioritizing further borrowing to support SMEs.
“Local contractors and suppliers, many of whom borrowed to fulfill government contracts, face financial ruin due to delayed payments,” the court papers state. Operation Linda Jamii seeks to halt the 2025/26 budget-making process until the Kenya Kwanza Administration implements an enforceable plan to settle the debts. The group also requests a legislative review of the Public Procurement and Disposal Act and the Public Finance Management Act to establish strict guidelines for managing pending bills.
Prof. Ogola asserts that the requested orders will not prejudice any party and will enable the court to deliver a fact-based verdict. The matter is scheduled for an inter partes hearing, where all parties will be heard, on April 25, 2025.
