Kilifi turns to bank loans to pay staff as national government delays funding 

The Kilifi County government has introduced a temporary solution to the salary crisis caused by the ongoing delays in disbursements from the national government.

County staff are now being paid through bank loans, a measure Governor Gideon Mung'aro says has been vital in maintaining essential services.

Mung'aro revealed that the county partnered with banks to offer loans to staff, with repayments to be made once funds are released by the national government.

“We had to find a practical solution. Our staff play a critical role in delivering services, and we cannot allow delays to derail their efforts,” he said.

The governor stressed the importance of the timely release of funds from the national government, noting that the county had yet to receive its allocations for both July and August.

Despite this, Mung’aro assured residents that services, including health, education, and water provision, remain operational due to the loan arrangement.

In addition to staff salaries, he said Kilifi is also working with financial institutions to ensure school bursaries are paid without delay. This, Mung'aro explained, is part of the county's broader effort to continue supporting education amid financial constraints.

Mung’aro also highlighted his administration's successes over the past two years, saying there have been improvements in areas such as health, where Kilifi has moved from being ranked 37th nationally to second place.

However, the governor acknowledged there were still challenges.

"There are areas where we have not performed well, and we have plans to address those gaps," he said.

At the same time, the governor outlined several development projects aimed at boosting employment and improving infrastructure. One such project involves the establishment of a Chinese-owned clothing factory in Mtwapa, which has already created over 4,000 jobs.

Plans are also underway to build warehouses in Mariakani, which are expected to employ an additional 10,000 locals.

Mung'aro further announced that Kilifi is poised to sign a memorandum of understanding with the China Chamber of Commerce this week, aimed at establishing a 3,000-acre industrial park at Kaya Fungo, a move he believes will significantly benefit the county.