Traders who supplied goods and services to the Kenya Prisons Service held a demo in the Nairobi city centre over Sh6.2 billion non-payment that later became a scandal.
The government has withheld billions of shillings owed to thousands of suppliers since 2018.
The Correctional Services Department had at some point vowed not to pay the pending bills.
At the centre of the dispute is an audit report that pointed to suspected collusion between rogue suppliers and employees at the Department of Correctional Facilities and Kenya Prisons.
The audit showed that some corrupt staff had paid suppliers who did not have credit letters, inspection or acceptance certificates.