The Institute of Certified Public Accountants of Kenya (ICPAK) has urged the national and county governments to expedite the implementation of the Prompt Payment Bill, 2021 to address the ballooning pending bills that now risks transitioning to the next administration.
It urged the two levels of government to adhere to the prescribed timeline of June 30, 2022, to settle all pending bills as proposed in the Prompt Payment Bill for the benefit of micro, small and medium enterprises (MSMEs) in the country.
“The Institute implores upon Parliament to enact the Prompt Payment Bill, 2021 to curb future delays and ensure businesses not only survive but thrive and make their rightful contribution to the exchequer,” said ICPAK chairman George Mokua in a post-budget reflection.
The Prompt Payments Bill that was enacted in 2021, placed a legal framework to facilitate quick settlement of bills by business owners, Principal Secretaries, and accounting officers per the terms of any written contract for goods supplied. Contravening the Bill attracts a Sh5 million fine, or face a jail term of five years, or both. Fast-tracking this Bill is seen as an attempt to address the perennial problem of pending bills that have dogged various businesses and constrained the finances of the new administration at the county and national levels.