Kenya’s president rules out debt restructuring despite financial crisis

By Andrew Wasike

NAIROBI, Kenya (AA) - Kenyan President William Ruto on Tuesday refused to consider debt restructuring as a solution to the country's financial crisis following a severe cash crunch that has resulted in the delayed payment of salaries to workers.

Ruto made this clear, saying that Kenya had never experienced such an incident before where both civil and public workers failed to receive their salaries.

“We are not going to borrow to spend on recurrent expenditures, including salaries. We will not do that,” he said during the release of a report on the performances of ministries, state corporations and tertiary institutions in Nairobi.

“I know we had an issue of delayed salaries, which is the first time that we are having that, but it is also the first time we are having monumental debts. I want to assure the country that is managed,” said Ruto, who admitted his government is facing financial challenges.

Members of Parliament are among those whose March salaries were delayed, with county workers also reporting similar issues.

But Ruto, who blamed the salary delays on the country's external debt, promised that all those who had not yet received their March salary would do so soon.

The Kenyan president's refusal to consider debt restructuring has raised concerns among some economic analysts, who believe that it may limit the government's options in dealing with the financial crisis.

However, Ruto remains committed to finding alternative solutions to the country's financial challenges.

Kenya’s cash crunch has left many public workers without pay, causing further strain on an already vulnerable population that is struggling with the high cost of living. The affected workers in the thousands have threatened to strike if they are not paid.