Gachagua Sides With Ndii, Blames Uhuru Govt For Salary Crisis

Deputy President Rigathi Gachagua confirmed on Sunday, April 9 that the government was struggling to pay salaries to civil servants in various parastatals in the country.

Speaking during a church service in Mathira Constituency, Gachagua noted that the financial challenges that have seen even Members of Parliament (MPs) spend Easter without their March 2023 salaries also affected counties.

However, he was quick to point a finger at former President Uhuru Kenyatta's regime, insisting that the Kenya Kwanza government inherited what he has been terming as a 'dilapidated economy' with empty coffers.

Deputy President Rigathi Gachagua visiting several coffee farms on April 8, 2023. /FACEBOOK.RIGATHI GACHAGUA

While appearing to agree with the Chairperson of President William Ruto's Council of Economic Advisors, David Ndii's sentiments made on Saturday, April 8, Gachagua revealed that the current regime has been embarking on servicing the debt left behind by the previous government.

“It is true we are having challenges in paying salaries, giving money to governors. Because the handshake government ripped this country, they borrowed money left right and centre. Because we are a responsible government, we have to pay this money,” he said. 

He further noted that the revenue collected recently had serviced some of the government loans that had matured last week, forcing it to pay the debt and that the subsequent collections would address the salary crisis.

While revealing that the current government could have run into trouble prior to the salary delay reports, Ndii responded to widespread concerns regarding the government being depleted of cash to pay its civil servants for the month by revealing that President Ruto's administration would be stuck between remitting the pending salaries or risk facing consequences of defaulting on loans.

Explaining the hardships, the renowned economist revealed that the government channelled more than 60 per cent of its revenue to service debts with less than 40 per cent of the collected revenue directed towards paying salaries and supporting other government expenditures.

Ndii further noted that the cash resources were thus in short supply, amidst the demand to remit civil servants their dues, leaving the current government with two choices; service the debt or pay the public servants.

"Is public finance that difficult? It's reported every other day debt service is consuming 60%+ of revenue. 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," he stated.