Several employees of Kenya Broadcasting Corporation (KBC) have reportedly not received their salaries for May 2023, as per sources within the government-owned media house. The delay in salary payments can be attributed to financial difficulties currently faced by government parastatals and agencies.
According to an insider familiar with the situation, the delay primarily is affecting part-time contract journalists working at the national broadcaster. This issue of delayed payments has been occurring intermittently since late last year (2022), and the management has yet to explain.
“Our staff at KBC have yet to receive their May salaries. Those on part-time contracts are the most affected. This has been a recurring problem for a few months now. No explanation has been given. We experience inconsistency in payment, with some months being on time while others face delays,” disclosed the source.
In April 2023, KBC’s Chief Executive Officer, Samuel Maina, apologized for the inconvenience caused by a previous delay experienced in March 2023. Maina assured the employees that their salaries would be paid as soon as possible, acknowledging the serious financial crisis faced by government agencies. He urged the staff to be patient while the media house worked towards resolving the situation, and recommended they establish financial contingency plans to mitigate the impact on themselves and their families.
Government cash shortages
The delayed salary payments are part of a broader cash shortage experienced by the government, resulting in delayed payments to various departments, suppliers, and contractors. The country is grappling with a financial crisis characterized by several factors, including unsustainable levels of public debt, and a struggling economy.
Between September 2022 and December 2022, the government received Ksh87.73 billion (USD 623,214,619) from the International Monetary Fund (IMF). This amount was disbursed in two installments of Ksh7.81 billion and Ksh54.92 billion. Additionally, on May 30, the government received Ksh140 billion from the World Bank to support its budget.
Furthermore, Deputy President Rigathi Gachagua announced on Friday, June 16, 2023, that the World Bank had granted the government an additional Ksh45 billion (USD 319,670,100) to finance its budget deficit. Mr. Gachagua noted, “Kenya’s public debt has reached 60% of GDP, which is considered high by international standards. The government has heavily relied on borrowing in recent years to cover its budget deficit, which has increased due to various factors, including infrastructure project costs and the wage bill.”
