THE Kenyan Government, still reeling from the effects of post-election turmoil, is not only in conflict with the country's workforce but is also in deep financial trouble.

President Mwai Kibaki, whose government is already facing multiple industrial actions from various civil service and private sector departments, told a May Day audience that the country was facing a daunting task in the wake of the post-election violence and therefore could not afford to set new higher minimum wage increases.

"The country is currently facing an economic crunch and let me tell you, it is not possible to come up with a salary increase now," Kibaki tried to explain to an angry crowd that had started to boo him at the end of his speech at Uhuru Park in Nairobi.

"Please listen," he pleaded as the crowd started to walk out on him. "But even if you do not want to listen, that is the position and there is no way you can avoid it."

A report notes that apart from the failure by the Kenyan Revenue Service to collect targeted funds due to the election violence that rocked the country at the beginning of the year, the bloated 'grand coalition' Cabinet of 42 ministries is eating up a big chunk of the money that could have gone to ordinary Kenyans.

The new Cabinet requires a minimum of approximately £14 million a month, and with the government scratching for funds there is no way it can announce a salary increase.