William Ruto, Kenya’s President, warned that Kenya will not acquire more loans to pay civil servants, amidst the threat received from union groups to go on strike due to unpaid March salaries.
Ruto clearly said; the delay in the payment of March salary is due to the country’s Significant public debt, with some looming loans becoming due this April.
He noted that the salaries will be paid out of tax revenue generated by the revenue authorities. The threat of a strike this week, however, has been made by at least two worker umbrella organizations.
According to local media, Kenya’s top economic advisor promised that salaries would be paid before the end of the month. The administration has been advised to stop wasting public money.
With nearly $420 million required each month to pay civil officials’ salaries and pensions, Kenya’s public debt currently represents 65% of the country’s gross domestic product.
This move comes as the World Bank and the International Monetary Fund independently issued warnings about a fresh debt crisis in sub-Saharan Africa, with a number of nations facing a considerable danger of financial difficulty.
