The Leader of the Minority in the National Assembly, Opiyo Wandayi, on Tuesday, April 11, warned the government against printing money to settle civil servants’ salary arrears.
Speaking during a press conference in Parliament, Wandayi argued that the move would not benefit all Kenyans but only those working for the government.
He claimed that the method was used in previous regimes to win the support of elite groups but cautioned Ruto against taking the same path.
Ugunja MP Opiyo Wandayi.
Opiyo Wandayi
“We want a firm guarantee from this regime that the bad boys in its ranks are not creating grounds for the printing of money to fund salaries for government workers, carry favour with the military and pay political opponents,” Wandayi stated.
The Ugunja MP instead challenged the state to increase the salaries of civil servants to cushion them from the continually worsening value of the shilling.
Wandayi accused Ruto’s administration of sitting pretty as the shilling fell not only against the dollar but currencies of neighbouring countries leading to a spike in the country’s cost of living.
“If the regime is not able to contain the slide of the shilling, then why have they not raised salaries in the public sector and the minimum wage in all sectors in tandem with the deterioration of the shilling?” the lawmaker questioned.
The lawmaker’s sentiments reinforced views of several financial experts who are against the idea of printing money to solve the financial crunch.
While citing the Zimbabwe scenario as an example, Professor XN Iraki explained that cash printing would lower the value of the Kenyan shilling resulting in hyperinflation.
Iraki proposed that the government should instead borrow from the international finance market while cutting down on state expenditure.
On his part economist, Vincent Kimosop explained that printing more money had to be backed up by real value otherwise it will lead to a lot of money circulation chasing few goods.
On April 11, Ruto, however, made it clear that he would not borrow money to meet the country’s recurrent expenditure.
The Head of State maintained that the salaries would be paid using domestic revenue collection and assured that civil servants would soon receive their pay for the month of March 2023.
President William Ruto presiding over the Performance Contracting Report at KICC on Tuesday, April 11, 2023.
William Ruto
Source: Kenyans.co.ke | Read More
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