Delayed Salaries for Civil Servants to be Disbursed Next Week
Delayed Salaries for Civil Servants to be Disbursed Next Week. Kenyan government salaries for civil servants have been delayed this month due to a lack of operating liquidity, according to David Ndii, Chair of the President’s Council of Economic Advisors.
Ndii mentioned that the government often ensures even monthly maturities to obtain money to refinance bills and debts on Citizen TV’s Monday Report.
“It’s not concerning. If you think about it, I believe that people also experience what is known as the January effect. Over Christmas, you went out and made purchases. You have to pay for school in January, and then you remember that your auto insurance is due. You presumably purchase both health insurance and other items. then there is a delay in your salary So, it’s just a functional type of liquidity shortage.” Ndii Stated
But unusually high maturities in March, when the government paid Ksh.150 billion in maturing bonds and bills, as well as a few market changes brought on by the US Treasury raising its rates and the Central Bank of Kenya raising the CBR by 75 basis points last week, have led to a market that is adjusting.
Ndii continued by stating that the government had intended to raise a billion dollars from the foreign market the previous year, but they were too late and were unable to do so. The outcome was a $120 billion deficit for the government at the end of the fiscal year, which had an impact on both the fiscal and liquidity sides of the economy.
In addition, he claims that the government is currently attempting to close that gap by borrowing from the domestic market and is encountering maturities that are bunching together, delaying the payment of federal personnel.
According to Ndii, the delay is not a crisis.
He said the government anticipates receiving $200 million through a syndicated loan and an additional $300 million by the end of the week or the following.
The civil servants were also given his assurance that their pay would be paid by the end of the following week. Ndii advises civil personnel to exercise patience as the government attempts to fix the situation even though the delayed salaries are worrying some of them.