While appearing before the National Assembly’s and National Planning Committee, Treasury Cabinet Secretary, Ukur Yatani, informed Members of Parliament that heightened demands and lower collections by the Kenya Revenue Authority (KRA) could compel the state to delay payments to civil servants.
On Monday, Ambassador Yatani stated that the Treasury will table a supplemental budget in Parliament that will for the first time suspend some essential government services.
“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,” Mr. Yatani said.
The Treasury needs at least Ksh50 billion monthly for civil servants’ salaries and more than Ksh8 billion for payment of allowances.
Retired government employees have not yet received cash despite receiving letters in late November that their dues have been channelled to their accounts, underlining the cash crunch in government.
The majority of public servants get payslips before the 20th of December that indicates the Treasury will pipe money to their accounts days before Christmas.
More than 530,000 civil servants including the police and teachers will hurt from the delay.