NAIROBI, Kenya, Apr 11 – President William Ruto says the government will not borrow money to pay public servants wages even as he insisted that the situation is under control.
Speaking during the launch of the report on evaluation of performance of ministries, state corporations and tertiary institutions, the head of state indicated that the government will source for its own funds through taxes and other means.
“I know we have an issue of delayed salaries, it is the first time this has happened but also it is the first time we are having such monumental debts. We are not borrowing money for recurrent expenditure including salaries” he said.
His sentiments came days after concerns by the National Assembly Minority leader Opiyo Wandayi stating Members of Parliament were yet to receive their salaries further indicating establishment that the state of our national revenue collection by the Kenya Revenue Authority (KRA) is worse.
“First, this financial year that ends in two months, the country targets to collect a total of Sh2.1 trillion as tax revenues (according to the Estimates of Revenue, Grants and Loans for the Year Ending 30th June 2023, duly approved by the National Assembly). However, KRA has managed to collect only Sh1.2 trillion as at end of February 2023, leading to a shortfall of Sh900 billion that is not realistically achievable within the remaining two months,” he stated.
Wandayi further recommended legislators form a committee with finance experts to examine the expenditure regime, administration, and policies obtaining at the National Treasury, the KRA, Registrar of Persons, Kenya Airports Authority (KAA) Kenya Ports Authority(KPA) and associated public bodies in the revenue generation and collection chain.
“That committee should also examine and come up with a coherent explanation of where we are, how we got here and the government’s response which, so far, borders on gross neglect and dereliction of duty,” he said.
The Treasury requires about Sh50 billion monthly for civil servants’ salaries and another Sh8 billion for payment of pensions.
