Home Politics Mudavadi Hints At Further Hardships For Government Workers

Mudavadi Hints At Further Hardships For Government Workers

by KDB
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Prime Cabinet Secretary Musalia Mudavadi has asked Kenyans to tighten their belts for a three-year economic turmoil that has seen skyrocketing prices of essential goods and services.

Kenya is running out of loan options and money to spend on things like salaries, Prime Cabinet Secretary Musalia Mudavadi has revealed.

He has said that of the Sh10 trillion Kenya can borrow, she only remains with a Sh600 billion legroom, having already borrowed Sh9.4 trillion.

Mudavadi says that as a result, there is no money, meaning that the government will continue being seen delaying it’s employees’ payments.

He has also revealed that remittances to the devolved units will continue being delayed, at a time when some governors are threatening to closed down.

“The shilling has depreciated. How much can you borrow internally? It will hurt us for two to three years, but we shall get out of it,” he said in Mombasa yesterday.

The leader stated that it is to address such shortcomings that the government is trying to come up with ways of increasing the money it makes, like introducing new taxes.

He has cited the proposed hike of Value Added Tax on petroleum products from 8 to 16 percent, saying that this way, additional billions will be made.

Mudavadi has, therefore, asked Kenyans not to just fight the proposals in the Finance Bill 2023 and come up with alternatives to taxes they feel are oppressive.

“Let us remember the finance bills are proposals, and we are open to views and some adjustments can be made to navigate in these hard financial times. If you want us to cede some taxes, give an option, or the deficit will be unmanageable,” he said.

People close to President William Ruto have blamed the situation on former President Uhuru Kenyatta, accusing him of mismanaging the economy when he was in power.

Opposition leader Raila Odinga too continues to be blamed, with Ruto and team wondering why he never advised Uhuru well then, yet they were together.


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