The Kenyan government has acknowledged that a cash shortage has prevented it from paying thousands of public employees’ salaries on time.
It claims that difficult choices had to be made about whether to pay the salaries or service millions of dollars’ worth of external debt that was due this month.
Also, the county governments that are in charge of public services like health and education have not received funds from the treasury.
The ministry, agency, and county government workers have been most impacted by the missed March paychecks.
Government financial limitations, according to Finance Minister Njuguna Ndung’u, are a result of underperforming revenues and restricted credit availability.
Two unions that represent personnel working for both the federal government and local governments have announced their intent to strike.
Rigathi Gachagua, the vice president, has said that the issue is the result of the previous administration’s heavy borrowing while in office and treasury raids before to its dissolution last year. Yet he hasn’t offered any supporting documentation for his claims.
David Ndii, the president’s economic adviser, described the issue as a “operational cash shortage” and argued that the delayed paychecks were not a catastrophe.
Mr. Ndii stated during a television interview that the government will be receiving $500 million (£460 million) through a syndicated loan and that pay for public employees would be paid by the end of the following week.
Kenya’s governmental debt is currently 65% of its income. The nation requires more than $420 million every month to cover civil servant salaries and pensions.