Kenya is in a situation where it either defaults on loans or delays remitting salaries to civil servants, President William Ruto's economic adviser David Ndii now claims.
He says the country is in a situation where its debts are ballooning and the revenue collections are shrinking.
As a result, the little revenue collected has to address most of the basic needs first including servicing its debt obligation.
"Is public finance that difficult? It is reported every other day debt service is consuming 60%+ of revenue," Ndi tweeted.
"Liquidity crunches come with the territory. When maturities bunch up, revenue falls short, or markets shift, something has to give. Salaries or default? Take your pick."
Read More
A statement released on Friday by National Assembly Minority leader Opiyo Wandayi said MPs were yet to receive their March salaries.
"For the first time in our history, even MPs have not been paid as we head towards mid-month," the statement reads in part.
The opposition says that the taxman is to blame for the “financial and economic crisis building up in the country”.
"Today, about six months into this regime, Kenya cannot pay salaries, leave alone finance its other operations," Wandayi said on Friday.
"This is the sad state of affairs that the administration is hiding from Kenyans."
The National Treasury admitted to a cash flow crisis of monumental proportions, saying there was not enough money to increase allocation to counties.
In the ensuing circumstances, a number of operations have been affected, and salaries for numerous civil servants delayed.
-1714135201.jpg)
