According to an SRC notice effective this month, Treasury is under pressure to raise an extra Ksh 1.07 billion annually to fund a new salary package.
The new salary package is for Cabinet secretaries, governors, MPs, MCAs, and other top state officers, while also implementing austerity measures to address a Ksh 346 billion deficit following the abandonment of controversial Finance Bill 2024.
Last year, the SRC announced that executive public servants would get a pay raise.
The pay rise began on July 1, 2023, and now the leaders were hoping for the financial year 2024 to sail through and get another increment.
However, things changed, and now, as they work on a restrained budget, after the fall of the the fall of the finance bill for 2024, the Treasury has no more money to pay the executive public servants.
Also, the US cautions that Kenya’s growing debt burden is compromising the country’s ability to deliver quality medical care and education.
Elevated debt servicing costs consume a larger portion of tax revenues, leaving little room for development projects and poverty reduction programs.
According to a biennial report by the Office of the United States Trade Representative on the African Growth and Opportunity Act, nearly 75.47 percent of taxes collected in the past financial year went towards repaying Kenya’s domestic and foreign debt.
