State uses Sh162bn loan illegally on salaries, utilities
Former President Uhuru Kenyatta. The government borrowed Sh916.6 billion in the financial year 2021/22, which was retired President Uhuru Kenyatta’s last full fiscal year in office.
Sh162.2 billion of borrowed money on operating expenses such as payment of salaries and utilities in breach of the law.
Official records show the government borrowed Sh916.6 billion in the financial year 2021/22, which was Uhuru’s last full fiscal year in office.
The State’s recurrent expenditure has been growing rapidly in recent years due to the accumulation of debt repayments, civil servants’ salaries and wages as well as a growing pension burden.
The government spent Sh162.2 billion of borrowed money on operating expenses such as payment of salaries and utilities in the financial year to June in breach of the law, reflecting a biting cash crunch.
Section 15(2)(C) of the Public Finance Management Act (PFM), 2012 dictates that the government should use borrowed funds only to finance development projects.
