Presidential economic advisor David Ndii has explained why the Government has not yet disbursed March 2023 salaries for civil servants.
In a tweet, Ndii confirmed that the Government has given priority to paying off the country’s debts which currently stands at Sh 9 trillion which is just over half of the country’s Gross Domestic Product (GDP).
He explained that 60 percent of all taxes currently collected by the government are used to pay off debts adding that revenues collected by Kenya Revenue Authority (KRA) are still not enough.
“Is public finance that difficult? It is reported every other day debt service is consuming 60%+ of revenue. Liquidity crunches come with the territory. When maturities bunch up, revenue falls short, or markets shift, something has to give. Salaries or default? Take your pick.” Ndii tweeted.
The national broadcaster Kenya Broadcasting Corporation (KBC) and MPs are among those affected by the delayed payments.
The economical crisis challenging the country was announced by the current regime as soon as they took over office.
“The truth of the matter is that we have inherited a dilapidated economy that is almost facing an economic shutdown, we have 10 billion (USD) public debt, six million Kenyans have no employment we have a demoralized public service,” the Deputy president Rigathi Gachagua said.
However, Kenyans have continued to question activities by the Government including the appointment of 50 Chief Administrative Secretaries (CAS),Sh802.2 million allocation to the President, DP Gachagua and Prime Cabinet Secretary Musalia Mudavadi to purchase new motor vehicles, launch of the Offices of Spouses and also overtime thanksgiving services that are reportedly facilitated by millions.