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Unpaid March salaries are creating a headache for Kenya’s administration as civil servants threaten to go on strike. But Kenya’s President, William Ruto, was on record that the country would not require IMF loans to pay civil servants
Unpaid March salaries are creating a headache for Kenya’s administration as civil servants threaten to go on strike. But Kenya’s President, William Ruto, was on record that the country would not require IMF loans to pay civil servants. Conceding that there is a delay in paying March salary, Ruto attributed the delays to the growing public debt and consequent servicing of that debt. Some loans are due to be retired this month necessitating payments along with interest.
Ruto asserted that revenues realized through taxes can be committed to pay salaries. But trade unions’ threat to strike work looms large if the salaries are not paid in time. The government sources assured that the salaries would be paid by the end of the month, while steps are being taken to reduce the wastage of public funds.
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Kenya’s public debt accounts breached the safe limits and are currently at 65% of the national revenue. For every month, there is a necessity to pay US$420 million for the salaries and pensions of civil servants. Importantly, the World Bank and the International Monetary Fund separately warned sub-Saharan African countries about a new debt crisis looming large with numerous countries at a high risk of debt distress.
