We Will Not Borrow to Pay Salaries, Ruto Says After Civil Servants' Pay Delay

President Ruto has assured civil servants that they will soon receive their salaries, which were delayed this month due to an operational liquidity crunch.

The president admitted that the government is facing challenges paying its workers owing to the mounting debts, which have forced the country to channel its revenue to service the loans.

"I know we had an issue of delayed salaries which is the first time that we are having that but it is also the first time we are having monumental debts," he said. "I want to assure the country that is managed, we have turned the corner."

Ruto reiterated that his administration will not rely on borrowing to finance recurrent expenditures, stating that the country must live within its means.

"All I assure the country is that we are not going to borrow for recurrent expenditure including salaries. That is the position of the government of Kenya. We will not do that. We will look for our taxes...We have to live within our means,” he added.

The government spends about Sh50 billion monthly to pay civil servants and an additional Sh8 billion for their pensions.

Ruto spoke on Tuesday during the release of the report on the evaluation of the performance of ministries, State corporations and tertiary institutions for the 2021/2022 financial year at Kenyatta International Convention Centre (KICC) in Nairobi.

On Sunday, Deputy President Rigathi Gachagua said some of the loans matured last week, forcing the government to pay the debt. He blamed former president Uhuru Kenyatta for the current financial crisis in the country.

“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. 

“What we collected the last two weeks was sufficient to pay the loans. What we are collecting this week will pay salaries and other requirements.”