Government Breaks Silence After Uproar on Delayed Salaries

• Author
• Recent Posts

Chrispen

Business || Brand strategist || Marketing - We make and break Brands®

Latest posts by Chrispen (see all)

• Matiang’i Ordered to Appear in Court - November 22, 2024
• Five Dead, Scores Injured in a Bloody Road Accident - November 22, 2024
• Mother who has Lived a Painful Marriage Life - November 22, 2024

Saturday, April 8, 2023 –Mr. David Ndii has pointed out that the current financial challenges are as a result of debt levels in the country.

The Economic Advisor in Kenya Kwanza administration, on April 8, revealed how the government could have faced a dilemma in choosing what to do with both loans and salaries for civil servants.

Today Saturday April 8, Mr.Ndii told a random Twitter user that President William Ruto must have reached a point at which he had to choose between salaries and not repaying the debts that comes with delay consequences.

He went ahead to clarify that the current government directed a whopping 60 percent of its overall revenue to service debts which were created by the past regimes.

Less than 40 per cent of the collected revenue, therefore, was reserved for paying salaries and supporting other government activities; what was not sufficient.

“Is public finance that difficult? It’s reported every other day debt service is consuming 60 per cent plus of revenue. Liquidity crunches come with the territory. When maturities bunch up, or revenue falls short, or markets shift, something has to give. Salaries or default? Take your pick.

“Foreign debt is not the the issue. I’m talking about weekly maturities of domestic debt held by your banks and pension funds (80 per cent plus of debt service),” he further clarified.

Statement from Ndii indicated that the country was either suffocating on debts or short in resources especially cash as, on the other hand, demand went up.

However, Ndii revealed that Ruto sought his services following his(Ndii’s)2014 projection that Kenya would run broke due to surging debts.

And after winning the presidential election of August 9, he brought him on board to help his administration solve the cash crunch issues.