Why investors are hesitant to lend broke government

Treasury Cabinet Secretary Prof Njuguna Ndung'u with the Principal Secretary Dr Chris Kiptoo. FILE PHOTO | NMG

Investors are unwilling to lend the government billions of shillings in a push for higher interest rates amid a cash squeeze that has seen the State delay payment of civil service salaries.

Only one in four Treasury bonds offered this year have met their target, with the latest issue raising a measly Sh3.57 billion against a target of Sh20 billion, reflecting a performance of 17.85 percent.

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Note: The results are not exact but very close to the actual.