President Ruto admits Gov't facing financial challenges, but maintains ‘we will not borrow to pay salaries’

President William Ruto on Tuesday admitted that the government is facing challenges to pay the salaries of public servants.

According to President Ruto, the precipice has been occasioned by the mounting debts which have forced the nation to channel its money on paying them.

The Head of State however stated that the matter has been solved and public servants will soon receive their pay.

"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."

He was speaking 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 the Kenyatta International Convention Centre (KICC) in Nairobi.

President Ruto went on to affirm that the government will not opt for excessive borrowing to cater for recurring expenditures including salaries, stating that his administration will fully bank on taxes.

"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," he said.

“We will look for our taxes...We have to live within our means."

Public servants use at least Ksh.50 billion monthly for salaries and Ksh.8 billion for their pension.

This lies on the backdrop of Deputy President Rigathi Gachagua's sentiments, where he said that some of the government loans had matured last week, forcing it to pay the debt. 

“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.”