Nairobi, Aug. 5 -- The private sector is facing an unprecedented liquidity crisis as mounting and systemic payment delays from ministries, state corporations and county governments choke business cash flows.

This persistent backlog of public sector pending bills is actively crippling operations, depressing private sector growth and triggering widespread job losses.

According to data from the Controller of Budget, outstanding public pending bills climbed to a record Sh465.87 billion as of March 2026, representing a 10.5 percent escalation from the Sh421.6 billion reported in March 2025.

Local suppliers and contractors routinely face payment delays of 30 to 90 days or longer, creating a persistent backlog that starves them of vital opera...