Several suppliers who provide goods and services to various counties and national governments are facing financial losses due to the refusal of governors and officials at the national level to pay for their services.
The most affected are those who supplied the goods and services before the current governors took over.
Affected businesspeople say the situation has worsened since new governors took over following the 2022 elections.
The governors and their staff are extorting us for sins we never committed.“We are experiencing a similar situation even in the national government, where brokers are demanding up to 30 percent of the pending bills before they pay,” said one supplier, who said he represents many others out there.
The supplier explained that in some county governments, the governors and their handlers are also demanding up to 10 percent of the pending bills. Some suppliers have resorted to arbitration and court proceedings to force the entities to pay them.
The affected departments have received orders for others to attach property through auction. But that has not been simple to enforce, they say.
For instance, a supplier is in arbitration with the West Pokot County government over medical supplies he delivered for use.
Lomut Kenya Limited had won a tender No. CGWP/T/157/2021-2022, issued by the County Government of West Pokot, and involved the supply and delivery of pharmaceuticals, non-pharmaceuticals, x-ray materials, laboratory products, and dental products, with a formalised contract value of Sh38 million.
A director, Mercy Mbuli Muasya, said regrettably, despite their diligent adherence to the contractual terms and successful delivery of goods as stipulated, they have encountered persistent delays in payment and what they perceive as unjust treatment from the county government.
“This has caused significant distress to our company as we await rightful payment for the services and goods we have provided, which we believe is in breach of the mutual understanding established during the contract’s inception,” she said.
She said that to date, the county government has released only Sh7 million out of the total value of Sh25 million for the delivered goods.
“The reasons provided in their letter of March 7, 2023, for withholding the remaining payment appear contradictory and fail to accurately represent the actual delivery process of the goods.”
She added that on October 12, 2022, at the Kapenguria County Hospital stores, both the supplier and county government representatives acknowledged receipt of the goods without raising any objections.
“Therefore, it would be unjust to introduce afterthoughts months later, alleging that the delivered goods do not align with the tender’s specifications.
”She added that the County Government of West Pokot initiated payment only after they contacted them, and the first payment was received five months after goods were delivered.
“This demonstrates prolonged and unexplained delays in the payment process, causing significant financial strain on our company.”
She continued, “Efforts to communicate with the county government regarding the outstanding payment have often met with a lack of responsiveness and transparency, leaving us without clear information on the status of our payment.”She said while they have shown patience and sought peaceful resolution, the extended payment delay has raised concerns about the potential need for legal action to protect their rights and recover the unpaid amount.
“In light of the above, we maintain our position that there may be a misunderstanding or misguidance in the actions taken by the county government of West Pokot.”
