Treasury Cabinet Secretary Prof. Njuguna Ndung’u on Wednesday, December 6 laid bare the sorry state of Kenya’s financial situation.

Appearing before National Assembly Committee on Finance and National Planning, CS Ndung’u said that the government has no adequate revenues, and is facing a liquidity crisis.

The CS, however, allayed these fears by affirming that Kenya is not facing a solvency crisis and is able to meet its long-term financial commitments.

“In one year Kenya has gone to two extremes, drought and El0-Nino. We have re-allocated development and recurrent expenditure budgets,” CS Ndungu’s told the committee.

CS Ndung’u also revealed to the MPs that the government is having troubles clearing salaries as well as salary arrears of civil servants.

As you know, we cannot afford to default on debt repayments. Even the Governor of Nairobi County called me crying, ‘I am going to be impeached because there are no salaries’,” he said.

NG-CDF Impasse

And in what comes as good news for the MPs, the Treasury CS pledged to disburse KSh5 billion next week towards the National Government Constituency Development Fund (NGCDF).

This comes a day after MPs stormed out of Parliament in protests of Treasury not disbursing these funds.

Consequently, the MPs wanted an assurance that Treasury will disburse a sum of KSh9 billion NG-CDF monies before breaking for a two-month recess.