The government owes media houses Sh1.7 billion in pending bills exposing the financial struggles that the sector players are currently undergoing.
Some media outlets have been forced to lay off employees and make significant budget cuts as a result of their financial troubles.
This comes at a time that the media industry emerged among the sectors worst hit with the changing business models post Covid-19.
However, the Cabinet Secretary in the ministry of ICT Eliud Owalo now says offsetting debt owed to media houses will be the priority in the short term.
“And we have agreed with the media houses that we will clear this debt progressively. The amount we have collected in Appropriations in Aid we will start to pay media houses,” said Owalo.
The CS who was speaking on Citizen TV challenged media houses to be innovative during the tough economic times and reinvent their operating models to remain competitive.
The government had about Sh800 billion in outstanding bills by September 2023, further piling hardship for enterprises across a different sectors that have been cash-starved.
The National Treasury’s most recent budget review shows that the amount of outstanding national government bills rose by Sh63 billion in just three months, to reach Sh630.6 billion at the end of September.
BY THE STAR