Government to Settle Ksh23.7 Billion pending bills following Cabinet approval

The Cabinet has approved the settlement of verified government pending bills worth Ksh23.74 billion, covering claims of Ksh50 million and below.

According to a Cabinet Dispatch issued on Friday, October 9, the payments will cover 28,726 verified bills out of the 29,257 claims recommended for settlement following a review by the Pending Bills Verification Committee.

In the Cabinet session chaired by President William Ruto at State House, Nairobi, on October 9, 2026, the executive approved an ambitious suite of multi-billion shilling projects spanning healthcare expansion, national energy transition, rural economic road corridors, and vital water security infrastructure.

The meeting, coming alongside stringently observed national emergency protocols, set in motion transformation agendas intended to modernise the economy, expand universal healthcare, and build resilient infrastructure.

Heading the Cabinet’s economic and social resolutions is a major healthcare overhaul designed to bring specialised medical treatment closer to citizens. Central to this plan is the construction of a new 2,000-bed Moi Teaching and Referral Hospital in Eldoret, a 1,000-bed Level Six facility in Mombasa, and the expansion of 13 Level Five regional hospitals by 300 beds each. Affected counties include Mandera, Marsabit, Turkana, Kilifi, Embu, Nakuru, Laikipia, Migori, Nyamira, Baringo, Bomet, Narok, and Kisii.

"This programme will significantly expand hospital capacity, reduce overcrowding in referral facilities, and bring specialised healthcare closer to millions of Kenyans," the Office of the Government Spokesperson stated following the deliberations.

In addition, the Cabinet endorsed an KSh8 billion specialized healthcare deal partnered with France to equip head and neck surgical units at Kenyatta National Hospital, Moi Teaching and Referral Hospital, and the University of Nairobi Dental Hospital.

The package further funds cancer treatment facilities and supports the training of 5,000 community health workers under Universal Health Coverage (UHC) initiatives.

To power Kenya’s industrialisation and expand household electrification, Cabinet adopted the Kenya National Energy Compact. The framework aims to mobilize KSh2.47 trillion ($19 billion) in public and private capital to extend grid connectivity to 5.1 million new households by 2030.  

Accompanying the grid extension is an $8.8million (approx. KSh1.1 billion) e-cooking initiative targeting 100,000households across Nairobi, Kiambu, Machakos, and Kajiado counties.

"The initiative will promote cleaner cooking, reduce household exposure to harmful smoke, and accelerate the transition to modern energy," noted the official executive brief.

To boost agricultural trade and regional integration, three major road corridors were cleared under the Roads for Rural Economic Development Programme:

South Rift–Lake Region Gateway corridor (253 km)

Great Highlands connectivity corridor (256 km)

Lake Victoria Ring Road (~400 km)

These transit networks are projected to cut haulage costs, reduce transit delays, and seamlessly link rural farmers, fishing communities, and market hubs to national corridors.

Addressing water scarcity, Cabinet approved an additional KSh12.83 billion to complete the construction of the Thwake Multipurpose Dam. Once completed, the dam will supply 150,000 cubic metres of clean water daily to over 1.3 million residents across Makueni and Kitui counties, including Wote town and Konza Technopolis.

Demonstrating commitment to fiscal stability and micro-enterprise growth, the executive approved KSh23.74 billion to clear pending bills owed to micro, small, and medium suppliers owed up to KSh50 million.

Finally, the Cabinet adopted the Sessional Paper on Transforming Education, Training and Research, clearing the runway for comprehensive reforms in Competency-Based Education (CBE), Technical and Vocational Education and Training (TVET) expansion, and teacher recruitment.