The Central Bank of Kenya has urged county governments to clear pending bills owed to suppliers, saying that a pile up of unpaid debts to suppliers is disadvantageous to the economy.
According to CBK Governor Patrick Njoroge, delay to pay the suppliers has reduced the flow of cash in the system, resulting in negative economic effects.
Speaking in Naivasha on Friday, he also pointed out that some of the suppliers have taken loans to supply the counties, and withholding their money is therefore wrong.
“Some of these suppliers have loans that they are serving and the counties should look at first paying them and there will be circulation of cash in the country,” he said, while addressing governors at the Enashipai Spa.
He stressed on the need fpr the county bosses to emulate the national government which cleared its bills in June, which he said has in turn improved the economy.
Council of Governors Chair Wycliffe Oparanya took the opportunity to decry some problems he said they are encountering as governors, including harassment by auditors.
He also accused the Ethics and Anti Corruption Commission (EACC) of mishandling governors accused of involvement, even as he said that the council is cooperating in the fight against graft.
“Every year we have the office of the auditor general going through our books of accounts but the sad this is that these auditors are seeking bribes from counties,” said the Kakamega Governor.
EACC Chairman Eliud Wabukhala said that the fight against graft is being done fairly and has not been politicized as some politicians might think.