A powerful watchdog has raised concern over persistent delays in settling bills owed to the Government Advertising Agency (GAA) by ministries, departments, and state agencies (MDAs), warning that the trend risks crippling service delivery.
The Public Accounts Committee (PAC), chaired by Butere MP Tindi Mwale, on Wednesday was told that government entities often place advertisements with GAA without promptly settling payments, citing delays in exchequer releases from the National Treasury.
Officials from the Ministry of Information, Communications and The Digital Economy led by Principal Secretary State Department for Broadcasting and Telecommunications Stephen Isaboke alongside Michael Okidi, Director at the Government Advertising Agency (GAA) admitted that while MDAs commit to adverts based on their budgets, the Treasury’s delayed release of funds frequently stalls payments.
“The reason we place the advertisements is because the MDAs, when planning their adverts, charge the expenditure to their own budgets. They align the advertisements with the available balances in their allocations. Once the ads are placed, payment requires funds to be released by the National Treasury through the Exchequer. At times, there are delays in the release of the Exchequer, which in turn affects timely payment. However, the payments are eventually made once the funds are disbursed.” Mr. Okidi told the committee.
However, committee members expressed dissatisfaction with the responses, with Hon. Mwale accusing some government officers of shielding institutions that owe them money instead of candidly telling parliamentary committees the truth to help resolve the growing problem of pending bills.
He expressed frustration that some officers appearing before the watchdog committee defend defaulting ministries, departments, and agencies (MDAs), even when they have not been paid for services rendered.
“Sometimes officers come here and end up defending those who are actually supposed to pay them,” Mwale said during a session at Parliament Buildings.
“Like now, you are defending people who owe you money, instead of simply telling the committee the truth: you provided the service, but they have not paid.”
The MP explained that when witnesses come clean, the committee can directly intervene to compel the responsible MDAs to settle outstanding obligations.
However, he warned that continued defense of non-paying entities only perpetuates the cycle of unpaid bills.
“If you make that clear, the committee can intervene and compel them to pay,” he noted.
“But if you continue to defend them, you will go back to your office with the same problem, because they will never pay you. They will keep diverting budget funds to other errands instead of settling what they owe the State Department.”
Mwale further urged civil servants to emulate institutions such as the National Police Service, which has in the past openly differed with the National Police Service Commission before parliamentary committees, allowing MPs to mediate and push for solutions.
“Don’t defend them, speak the truth,” he stressed. “Even the media has shown instances where the National Police Service differs with the Commission before a committee, and the committee helps them. In the same way, you should be honest: say, ‘We advertised, we did the work, but when it comes to payment, they have refused to pay.’”
Pending bills remain one of the thorniest issues facing the government, with suppliers and contractors often citing delayed or non-payment for goods and services already delivered.
The Auditor-General has repeatedly flagged irregularities and budget diversions within MDAs, raising concerns over accountability and fiscal discipline.
The Government Advertising Agency (GAA) is owed a cumulative Ksh 991 million by various ministries, departments, and state agencies (MDAs).
The biggest debtor is the Kenya Broadcasting Corporation (KBC) with Ksh 170 million, followed by the Kenya Forest Service (KFS) at Ksh 36 million, the Kenya Film Classification Board (KFCB) at Ksh 36 million, the Kenya Yearbook Editorial Board (KYEB) at Ksh 34 million, the Media Council of Kenya (MCK) at Ksh 10 million, and Development Initiatives (DI) Works in Kenya at Ksh 3 million, among others.
PS Isaboke and GAA officials said they had introduced measures to curb the ballooning debt, including insisting on Local Purchase Orders (LPOs) and barring agencies owing more than Sh2 million from placing fresh adverts.
They further noted that follow-up letters and engagements with defaulting agencies were ongoing.
Even so, lawmakers pushed for stronger accountability measures, stressing that the system must change to prevent the accumulation of perpetual arrears.
Rarieda MP and Senior Counsel Otiende Amollo urged the ministry to adopt a stricter policy: no advertising should be undertaken without an upfront release from the Exchequer.
“It is not just about the commitment to pay, it is about issuing instructions only when the funds are actually available. You can’t entirely blame them, as Mr. Okidi suggests, because in some cases MDAs rely on budget allocations that are later cut. So, who carries the blame? The blame game circles back to the Treasury, but it doesn’t solve the problem. Why not insist that instructions are issued only when money is confirmed, so that once funds are available, payment can be made and the GAA can proceed with advertising?” posed Amolo.
His sentiments were echoed by Samburu West MP Naisula Lesuuda, who suggested that the Secretariat should track such arrears and flag them as audit issues whenever MDAs appear before PAC.
“This way, every entity that owes GAA will be forced to explain how and when it intends to pay,” Insisted Lesuuda.
Officials from the ministry however insisted they are tightening enforcement to safeguard the agency’s finances.
They revealed that MDAs are now required to issue Local Purchase Orders (LPOs) or Local Service Orders (LSOs) before their adverts are published, creating binding commitments to pay.
“We have also barred institutions with arrears exceeding Sh2 million from placing new advertisements. This forces them to clear outstanding bills before coming back to us,” Mr. Okidi explained.
Additionally, the Office of the Head of Public Service has rolled out a new regime of zero-audit findings and infraction tracking, aimed at holding accounting officers personally liable for unfulfilled financial commitments.
“You will only commit what you can pay. If you sign an LPO and fail to honor it, that becomes an infraction, and enforcement measures follow,” the PS said.
The crisis has revived debate about whether the GAA, established in 2015 to centralize government advertising, has outlived its usefulness.
Senior Counsel Amollo challenged officials to explain why MDAs should be forced to use GAA if the agency itself cannot guarantee timely services or payments.
“Those who owe you money cannot place adverts, yet the law compels them to advertise. So is GAA still necessary?” he asked.
In response, officials defended the agency, insisting it remains vital for cost efficiency and compliance.
“GAA was created to eliminate inflated rates charged by private media houses and to streamline government communications. It is a basic service, some adverts are legally mandatory. What we need is alignment between budget commitments and payments, not abolition,” the PS argued.
The committee also heard that financial woes at the Kenya Broadcasting Corporation (KBC) have been compounded by outdated infrastructure, which has weakened its competitiveness against private media and driven advertisers to digital platforms.
Officials admitted that outdated equipment and poor modernization have cost the national broadcaster advertising revenue, worsening its financial woes.
“It is a chicken-and-egg situation. Because KBC cannot modernize, it loses advertisers to private rivals and online platforms. That lost revenue then creates budget gaps,” the PS said.
