The government is in a financial fix- Treasury CS warns on salary delays.
National Treasury and Economic Planning Cabinet Secretary Njuguna Ndung’u has warned of very tough times ahead citing that the government is in a financial fix.
While explaining what is really happening, Mr. Njuguna stated that national government is facing financial difficulty as it is caught between underperforming revenues and trying to offset the huge loans left by the previous regime( Uhuru Kenyatta).
Ndung’u stated that in addition to delayed civil servants’ salaries, several government programs have stopped, including disbursement to the counties and investment projects with most of the funds being channeled to the paying of the debt.
He stated,”The national government is caught between two extremes; high level of debt financing and financing constraints due to limited access to finance in the domestic and international financial market.”
According to statistics, Treasury requires about Sh50 billion monthly for civil servants’ salaries and another Sh8 billion for payment of pensions.
The salary delay has been an issue over the easter holiday, a decry that was started by Minority leader, Opiyo Wandayi.
Most lawmakers have come out to decry the poor state of their banks saying they have never seen civil servants being delayed before.
Vihiga senator stated,”I have not seen anything in my bank account, maybe because I don’t have an account with Cooperative Bank.”
Mumias East lawmaker, Peter Salasya decried,”Not even during [former President Daniel arap] Moi’s time did we ever experience this. It also didn’t happen during the Covid-19 pandemic when the global economy received its worst beating in the 21st Century.”