County finance chiefs now risk being surcharged for exposing public assets to auction due to poor planning in procurement and payments.
According to the Public Procurement Regulatory Board, this follows an increased number of complaints from suppliers, contractors, and service providers regarding delayed and unpaid bills for goods, works, and services delivered to county governments.
Public Procurement Regulatory Board (PPRB) Chairman Mwangi Wa Iria says that the authority has intensified analysis on court decisions on procurement and asset disposal proceedings.
“Where it is established that public resources have had to be used to pay costs unrelated to planned and budgeted contractual obligations, such costs will be borne by the responsible officers who will be surcharged by the procuring entity for the loss resulting from their actions or inaction,” said Wa Iria.
In its latest circular, PPRA says it is closely monitoring compliance and will hold individual accounting officers accountable where evidence shows deliberate non-payment of contracts.
According to Wa Iria, the Authority will escalate cases of non-compliance to relevant enforcement agencies for necessary action.
“Public procurement must serve as an engine for economic growth, not a source of financial distress,” said the chairman.
“I therefore urge all county governments to act immediately and ensure that payments are processed without further delay. We will not tolerate instances where public officers deliberately frustrate suppliers. Those responsible for non-payment of legitimate invoices will be held accountable,” he said.
The Authority is further calling for immediate action by county governments to address the backlog of unpaid invoices, saying that failure to honour contractual obligations is a violation of the Public Procurement and Asset Disposal Act and a direct threat to Kenya’s economic growth and financial stability.
“We cannot continue to ignore the severe impact that delayed payments have on businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), which form the backbone of our economy,” stated Mwangi Wa Iria.