Business leaders are calling on the government to prioritize the payment of pending bills, warning that delays have worsened the cash crunch affecting companies and slowed economic activity across the country. They argue that settling outstanding dues owed to contractors and suppliers would inject much‑needed liquidity into the economy and help struggling enterprises recover.
Speaking during the Topspin Excellence Awards in Nairobi, Nyota Njema Properties proprietor Perminus Kariuki said many businesses have been forced to downsize this year due to limited cash flow, resulting in job losses and stalled expansion plans. Kariuki noted that reduced money circulation has weakened purchasing power and dampened investment appetite among Kenyans.
Kariuki urged the government to work more closely with local firms instead of outsourcing services to multinationals, saying such partnerships would stimulate growth and create employment opportunities.
He added that clearing pending bills would give businesses the breathing space they need to stabilize and grow.
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Precision Automotive CEO Imran Sokwala echoed the concerns, saying the private sector, particularly the automotive industry, requires friendlier policies, tax reliefs and a stable shilling to remain competitive. He said the sector contributes billions in foreign exchange and has the potential to create over one million jobs if supported through incentives and modern technologies such as electric vehicles.
Kennedy Wachira of Kendirect Imports said high taxes on spare parts have strained businesses, urging the government to review the levies to allow firms to contribute meaningfully to economic growth. Baraka Real Estate’s Terry Muriuki added that increased taxation, including the rise in stamp duty from 2 to 4 per cent in urban municipalities, has pushed property prices beyond the reach of ordinary Kenyans.
Kwale County Trade and Tourism Executive Michael Mutua noted that despite economic challenges, tourism recorded a strong performance this year. He called for increased investment in infrastructure and marketing to sustain the sector’s momentum.
By John Kamau
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