The National Treasury Cabinet Secretary Njuguna Ndung’u has warned civil servants of a delay in processing their salaries.
The Treasury Cs further explained the reason behind it, stating that the government was overwhelmed with debt and borrowing, underwhelming revenue growth.
“The national government is forced to choose between two extremes: high debt financing levels and financial limits brought on by limited access to credit in both the domestic and global financial markets,” he said.
Njuguna also disclosed that the exchequer is in a financial mix and government employees from ministries and state agencies will have to wait for their April salaries.
The statement comes just a day after the deputy president Rigathi Gachagua said the government was having difficulties paying salaries owing to fast-maturing debt obligations.
Also Read: “These Economic Challenges Were Left to us by Previous Regime” Murkomen
The Roads and Transport Cabinet Secretary Kipchumba Murkomen on Sunday said that some of the current economic challenges were left behind by the previous regime which is why the government has failed to meet some of its financial obligations.
Speaking on Sunday at a church service in Iten Elgeyo Marakwet, the CS said the government is trying to pay up debts left behind, and at the same time clarified that the country was not broke.
” I can see there is an ongoing debate that the country is broke. It is not that there is no money, all the money is being eroded by debts. The debt that was taken, and some were taken haphazardly, for some debts, the money has never been accounted for,” Murkomen explained.
Civil servants monthly pay accumulates to Sh50 billion and Sh8 billion for payments of pensions. As of March 2023, the National treasury had accumulated debt repayments of Sh150 billion.