Word from the corridors of power is that the government is broke! This is not news to majority of tender-preneurs who have so far not been paid arrears running into millions of shillings for development projects undertaken since March 2015.
Our source at Treasury also confirmed the government has silently frozen spend on development budgets, in the first quarter of financial period 2015/16 (July to September) not even a coin has paid out.
There was rumours of crisis talks in Statehouse where Central Bank, Treasury and KRA officials had hard time to explain the empty coffers.
Kenya Revenue Authority has not met the revenue targets as set out in the budget estimates presented to parliament. There are high cases of tax evasion among politically correct business enterprises and therefore denying government a strong source of revenue.
Some ministers in government are blaming their counterparts for bringing the government to her knees for allowing corruption to flourish. a cabinet minister who joined cabinet from commercial sector has threatened to resign if president will not move to end the runaway corruption.
The shilling has also taken a big hit down by almost 20% this year mainly due to high current account deficit and poor tourism inflows (no Chinese tourists as was promised by Jubilee)
The Central bank has intervened in the market to support the weaker shilling by mopping excess liquidity and also by selling dollars but still the adamant shilling has remained rock-bottom.
And even on the secondary market less and less government bonds are being traded
Elsewhere Nation Media has reported that the government is so broke such that it cannot afford to pay for basics bills like rent.
Hundreds of civil servants have been loitering in the city centre this week after their offices were locked out by a landlord because the government defaulted paying rent estimated to run into millions of shillings.
The civil servants, attached to the the Ministry of Sports, Culture and the Arts, have been locked out of their offices in Uchumi House since Monday.
Doors to their offices have been locked by chains and padlocks by the landlord who has refused to grant them assess until all arrears are settled.
No explanation has been forthcoming from ministry officials.
The Sports Ministry occupies the third and eleventh floors of the building located on Aga Khan Walk. The two floors house the department of library services.
The Minister Hassan Wario and his Principal Secretary Patrick Omutia operate from the neighbouring Kencom house.
A visit by Nairobi News to Uchumi House confirmed that the landlord has locked out the civil servants.
Guards manning the building have been strictly instructed not to allow anyone access the affected offices.
â€œThere is nobody in those offices. The workers have been locked out after government failed to pay rent,â€ one of the guards told our team.
Our team took the lifts to third floor and found doors leading to the offices locked with chains and padlocks.
We even had time to take a couple of photos and a video of the locked doors!
One of the affected civil servants confirmed to us that the workers have not been working since Monday.
â€œWe are just loitering here since Monday. There is no word from anyone on the way forward,â€ he said.
A spokesman at the Ministry of Sports confirmed the stalemate.
â€œI am just back in the country at the moment and I have not been briefed properly on the update, but the time I left, we were trying to process monies to reduce the arrears,â€ he said.