Kenyan leader rejects additional loans to pay employees

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Even as union groups threatened to strike over unpaid March salary, Kenya’s President, William Ruto, declared that the nation will not seek loans to pay civil personnel.

Ruto claims that the country’s significant public debt, some of which are coming due this month, is to blame for the salary delays.

He highlighted that the revenue authority’s tax collection will be used to fund the salaries. However, if the salaries are not paid, at least two worker umbrella organizations have threatened a strike this week.

Speaking to the local media, Kenya’s senior economic adviser gave the assurance that the salaries would be paid before the end of the month. The government has been urged to stop wasting tax dollars.

Currently, approximately $420 million is required each month to cover the salaries and pensions of public employees in Kenya, where the public debt represents 65% of the country’s total income.

This development follows warnings issued separately by the World Bank and the International Monetary Fund about a new debt crisis in sub-Saharan Africa, with many nations facing a high risk of financial disaster.

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