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Kenya stops borrowing to pay government worker salaries

A new integrated system linking financial and payroll management has ended Kenya's practice of taking loans to cover public sector wage bills.

Kenya has stopped borrowing money to pay government employees' salaries, the Controller of Budget Margaret Nyakang'o has said. The change followed the integration of the Integrated Financial Management Information System with the Government Human Resource Information System. Nyakang'o said the linked systems have improved tracking of government payroll obligations and strengthened controls over how salary funds are distributed.

The integration addresses gaps that previously existed in managing government payroll and salary payments, Nyakang'o explained. Better visibility over salary obligations has reduced the need for borrowing to cover recurring spending. The connected systems also help ensure that money released by the National Treasury reaches employees more promptly and is used for its intended purpose.