A petition has been filed seeking to suspend the ongoing national budget-making process for the 2025/2026 financial year until the government clears pending bills amounting to over Sh698.27 million.
The lawsuit lodged by Operation Linda Jamii and led by Prof Fred Ogolla seeks orders barring the National Assembly and the National Treasury from proceeding with the budget process.
The lobby group argues that it is unconstitutional and fiscally irresponsible for the government to proceed with new budget allocations while ignoring huge unpaid debts which continue to strangle the private sector particularly small and medium-sized enterprises (SMEs).
According to the petition, the national government owes suppliers Sh516.27 billion, with State corporations accounting for Sh379.8 billion and ministries, departments, and other agencies owing Sh136.5 billion.
The petitioner argues that county governments have pending bills amounting to Sh182 billion, with county executives and assemblies owing suppliers Sh179.87 billion and Sh2.11 billion respectively.
Recently, the House approved the supplementary estimates II which will increase the 2024/2025 financial year budget by Sh113.7 billion. Under the allocation, Sh2.5 billion will be directed towards Haiti peacekeeping mission where Kenya deployed an additional 144 police officers last month.
The funding for Haiti mission comes at a time the country is grappling with a funding freeze imposed by the US government early last month by President Donald Trump.
