Like Nigeria, Cash crunch hits another African Country

0

Kenya admits cash crunch as workers Threaten Strike

 

The Kenyan government has admitted that it is experiencing a cash shortage, which has caused thousands of public employees’ salaries to be delayed.

 

It claims it was forced to make difficult choices between paying salaries or servicing millions of dollars in external debt due this month.

Advertisement

 

Read Also: FRSC recruitment link for online application

 

According to the report, the treasury has also failed to transfer funds to counties, which oversee public services such as health and education.

Advertisement

 

Ministry, agency, and county government employees have been the most negatively affected by the March pay delays.

 

Minister of Finance Njuguna Ndung’u stated that the government was facing financial constraints due to underperforming revenues and restricted access to credit.

 

Nonetheless, two unions representing federal and county government workers have issued notices of their intent to boycott work.

Advertisements

 

According to a report, Vice President Rigathi Gachagua attributes the crisis to the previous government, which he accuses of borrowing heavily while in power and plundering the treasury before leaving office last year. However, he has not provided any proof of the allegations.

 

Also Read: Tension as IPOB Declares May 30 Sit-At-Home day In Southeast

 

While Presidential economic adviser David Ndii stated that the delayed paychecks did not constitute a crisis, he referred to the situation as a “operational liquidity crunch.”

Advertisements

 

Mr. Ndii stated in an interview that the government was anticipating $500 million from a syndicated loan and that civil servants’ salaries would be paid by the end of the following week.

 

In the meantime, Kenya’s public debt has increased to 65% of revenue. The country requires more than $420 million per month to pay civil servant salaries and pensions.

Advertisements

 

Thanks for using our platform to learn about the latest Naija News on Kenya admits cash crunch as workers Threaten Strike

Advertisement
Advertisements

Advertisements

LEAVE A REPLY

Please enter your comment!
Please enter your name here