There is panic at the Treasury following an admission by Treasury CS Ukur Yatani that President Uhuru’s regime has run broke and is unable to pay salaries of over 530,000 government employees. Including teachers and the police, which has been attributed to Covid-19 and the ravaged economy from intense looting of public funds.
Treasury Cabinet Secretary Ukur Yatani who was appearing before lawmakers at the National Assembly revealed that increased demands and lower collections by the Kenya Revenue Authority (KRA) are forcing President Uhuru’s regime to not only postpone but also cancel some payments to civil servants.
“As we do this (payment of other essential services) …we are suspending or postponing some of the payments for salaries because exchequer is not there. Unfortunately, we have no other words to say. It is not just there,” Mr. Yatani told the MPs.
The government also plans to table a supplementary budget that aims at freezing some essential government services, for the first time since Kenya became a sovereign state. Kenya’s public debt currently stands at 8.3T, and things are not getting better either as the country’s revenues keep on falling.
Kenya is discussing a $2.3 billion (Sh256 billion) lending programme with the International Monetary Fund (IMF) to support its budget.