President Uhuru Kenyatta's remarks on the teachers' strike ignited an uproar in the country with some accusing his advisors of having misdirected him.
Kenyatta told teachers last week that their demands were unsustainable and that the government was not in a position to pay them. However, it is reported that the President had a briefing moment with the National Treasury Cabinet Secretary Henry Rotich before he made the statement.
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CS Rotich cautioned the Head of State that the 50-60 per cent pay rise demanded by teachers would increase VAT from 16-21 per cent. He further noted that the 5 per cent Tax increase would slow down economic growth.
In his brief to the President, he eliminated some of the options suggested in order to meet teachers' demands. The CS warned against budget cuts, citing that the move was illogical, as the current budget had already been implemented adding there was little that could be slashed.
Rotich dismissed borrowing to facilitate the payment claiming that it would be a violation of the fiscal principle stipulated in the Public Finance Management Act, 2012. In the brief reportedly seen by The Star, the Treasury CS also mentioned that borrowing would push interest rates up and it ought to be reserved for building infrastructure.
Treasury also said that the teachers' demands would distort equity in remuneration compared to other civil servants in the same job groups.
Teachers have been on strike for three weeks now and have vowed to remain rooted to their cause despite threats of losing their jobs.
Teachers through their unions have adamantly stated that they would only go back to class after government pays the salaries awarded by the court.
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