A report from the Treasury confirms that the government has silently frozen spending on development budgets for the first quarter of the 2015/16 financial period, with no payments made from July to September.
Additionally, the Kenya Revenue Authority has not met its revenue targets, as outlined in the budget estimates presented to Parliament. This shortfall is partly due to widespread tax evasion among certain business enterprises, resulting in a significant loss of revenue for the government.
Some government ministers have criticized their counterparts for allowing corruption to thrive, which they believe has contributed to the financial crisis. A cabinet minister who joined the government from the commercial sector has reportedly threatened to resign unless the President takes action to address the issue of corruption.
The economic situation has also led to a decline in the value of the shilling, which has dropped by nearly 20% this year. This decrease is attributed to a high current account deficit and poor tourism inflows.
Consequences of the Financial Crisis ¶
The financial struggles of the government have resulted in unpaid bills, including rent for office spaces. According to Nairobi News, hundreds of civil servants from the Ministry of Sports, Culture, and the Arts have been unable to access their offices in Uchumi House after the landlord locked them out due to unpaid rent.
The Minister of Sports, Hassan Wario, and his Principal Secretary, Patrick Omutia, were not available for comment. However, a spokesman for the Ministry confirmed that they were attempting to process payments to reduce the arrears.
The situation has caused disruption to the work of the civil servants, who have been unable to access their offices since Monday.
The recovered account cited reporting by Nation.
