State spent Sh80billion IMF loan on staff salaries in June, report shows
The state has spent Sh80 billion on staff salaries and allowances in June this year.
A new report shows that the country diverted funds from a Sh80.78 billion loan from the International Monetary Fund to pay salaries and allowances.
The state also used Sh18 billion from a Sh70 billion loan meant for housing and urban development departments on salaries and allowances.
According to a data from the Office of the Budget Controller, the salary of staff working in President’s office and his deputy, in the country grew to 282 per cent from $ 2.26 billion the previous year.
“The increased spending on salaries and allowances at the two offices and other state agencies forced the government to divert loans earmarked for development projects to compensate employees amid flow struggles,” stated the report.
The report shows that the salaries and allowances from the two most powerful political offices have been growing quarter over quarter and reached Sh5.43 billion in March from Sh355.8 million a year earlier.
Other offices that registered a significant increase in salaries and benefits are the Teaching Services Commission (TSC) and the Ministries of the Interior and Health.
This cames at a time when Salaries and Remuneration Commission (SRC) suspended review of basic salary structures and allowances paid in the public sector to jumpstart the economy that has been ravaged by Covid-19.
SRC chairperson Lyn Mengich said the decision was arrived at following recommendations by the National Treasury, citing tough economic times and constraints to the budget occasioned by the coronavirus pandemic.
“Cognisant of the government’s financial constraints, the current wage bill ratios, the need to release resources for investment in the strategic priorities of the government to jumpstart the Covid-19-ravaged economy, there will be no review of the basic salary structures, allowances and benefits paid in the public sector in the financial year 2021/2022-2022/23,” she said.
Additionally, she said there will be no salary increments for the public servants for the next two years.
The commission further announced that no additional funding will be provided for implementation of the job evaluation results in the next two financial years.
