Civil Servants Salaries Kenya: Civil servants in Kenya will not get their salaries on time this month. This is after the National Treasury admitted that it was facing a cash crisis.
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 in a local daily on Monday, Yatani has already “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 mess. “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 was quoted by the Business Daily.
The report further said that on average, Kenya uses Sh. 50 billion monthly for civil servants salary and another Sh. 8 billion for payment of pensions.
All civil servants who pay NSSF to be moved to permanent & pensionable
This comes as civil servants in Kenya prepare to take home reduced salaries. 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.
The employees attached to ministries and State agencies will see a portion of their salaries sliced for onward remittance to the soon to be created Public Service Superannuation Scheme (PSSS). This means that State workers will cede about Sh. 2.4 billion monthly or Sh. 28 billion to the fund that will emerge as Kenya’s largest pension scheme.