Salary pay cuts. Civil servants will see their salaries delayed after treasury CS confirmed that the government is facing financial challenges that has crunched the treasury into financial shortage.
According to cabinet secretary for the National Treasury Ukur Yatani, increased demands and lower collections by the Kenya Revenue Authority (KRA) are likely to force the government to either postpone or delay some payments to civil servants. In a report that appeared on Business Daily on Monday, Yatani has already written to the National Assembly’s Finance and National Planning committee that the Treasury will table a supplementary budget in Parliament that will for the first time freeze some essential government services
This is the latest indication that Kenya is broke and in a deep financial crisis. “As we do this (payment of other essential services) …we are suspending or postponing some of the payments for salaries because exchequer is not there. Unfortunately we have no other words to say. It is not just there,” Yatani stated.
On average, Kenya spends Ksh.50 billion each month on civil servants salaries and at the same time the Ksh 8 billion on pension.
Mid this year CS Yatani had issued a directive compelling civil servants to take pay beginning next year. Teachers, police officers and all civil servants in Kenya are set to take home reduced salaries. The more than 530,000 civil servants will in January 2021 have their take-home reduced by 7.5 percent.
State workers among them employees attached to ministries will also see their salaries sliced. This will see them forego around Ksh 2.4 billion each month.
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