July 3, 2024

How Uhuru circumvented salary delays during his tenure

2 min read
How Uhuru circumvented salary delays during his tenure

Uhuru circumvented salary delays during his tenure according DP Rigathi Gachagua adding that Ruto won't do the same

Uhuru circumvented salary delays during his tenure according DP Rigathi Gachagua adding that Ruto won’t do the same.

On Wednesday, April 19, Deputy President Rigathi Gachagua described how President Uhuru Kenyatta got around paying delays while in office.

The DP stated during a meeting with Deputy Governors in Mombasa County that Uhuru periodically borrowed money from local banks to pay the salary.

The Jubilee administration’s plan, he claimed, was inadequate as it failed to address the problems that were generating the salary delays.

Gachagua claimed that because the loans were expensive, President William Ruto made the decision not to adopt Uhuru’s approach.

“It is true that we have had challenges because the President has made a conscious decision that it is not prudent for the government to borrow money from banks at 14 per cent interest to pay salaries.

“We have agreed as a government that the only way to restore the economy of the country to where President Mwai Kibaki left it is to fund the budget through revenue collection,” Gachagua detailed.

However, he noted that only a few politicians were benefitting from the expensive loans as some of the officials in the past administration had shares in local banks.

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The DP went on to say that since Ruto had to give debt repayment top priority, the loans played a significant role in the current economic predicament.

He did point out that the overdue salaries had already been fully paid.

“Last month we had challenges because the previous administration used to borrow money from banks linked to the same leaders and we said no to it,” he asserted.

Gachagua was responding to concerns over unpaid wages and cash shortages that some county governments are experiencing as a result of the national government’s delayed payments.

In March, a number of government employees encountered salary delays— that had not previously occurred in the country.

The delays also saw the Kenya Kwanza administration attract criticism over the delays even as Azimio la Umoja leaders led by former Prime Minister Raila Odinga called for an audit over the same.

Also read,

Ruto’s economic adviser responds to cash crisis over delayed salaries

Tough times ahead as Treasury warns civil servants of more salary delays

Ruto adopts new approach in borrowing foreign loans

IMF projects Kenya’s economy to overtake Angola as Ethiopia widens lead

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