The country is bleeding and jobs are becoming few, however, some firms such as Aryan EPZ Limited located in Baba Dogo, industrial area zone have decided to take advantage of their staff by not paying them their march salaries.
A staff member wrote to Kenyanbulletin.com about their predicament:
“United Aryan EPZ Ltd Bäba Dogo hasn’t paid employees March salary. Instead, they are still compelled to continue working and the employer wants to offer them a ‘small loan’ of between 2000 to 6000 at 8% interest pm. Investigate this fraud kindly. Employees can’t even afford the fare to work and they are already halfway through the second month without pay”, he said
The firm sees an opportunity to loan staff money that they have worked for which is appalling.
Kenya is struggling with loans which were over and above the required limit to leave room for borrowing in times of emergencies.
It was reported in the Standard Media that the country was having only Sh2.8 billion in its coffers, which was not enough in fighting covid-19 emergency.
Data from the Treasury showed that by end of February, the country had only Sh2.8 billion in its accounts, too little to help it effectively combat the effects of the coronavirus pandemic. And with the Treasury’s finances in poor shape, some analysts said it is nearly impossible for the State to give tax relief – unless it drastically cuts its spending.
The government has not cut its spending, in fact, after the covid-19 era is gone, we might witness cases of more theft of the monies contributed to the Kenya Covid-19 Fund.
In this crisis the Treasury has the option of increasing borrowing, but even before the current global health crisis, it was trying to run away from this as it had reached its limit.
Previously, at around this time, the government would have taken or be in the process of taking a commercial loan – either a sovereign bond, such as the Eurobond, or a syndicated loan from banks.
Kenyans are hurting
There are other cases of non-payment of salaries, suspension of salaries for the period of COVID-19 fight, slashing of salaries by certain percentages.
Coronavirus infection toll now stands at 281 in Kenya with 69 recoveries and 14 deaths.
The road ahead seems tough, but loaning staff their money to be repaid at interest like Aryan EPZ Limited is trying to do is wrong.