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State freezes projects, asks agencies to remit their dues

Head of Public Service Joseph Kinyua.

The government has for the third time in the year frozen all development projects as the cash crunch continues to bite and the State begins to eat from the pot of its own parastatals.

In a circular issued on Monday, all arms of government were also reminded to remit the Pay As You Earn (PAYE) and pensions for their staff without fail, a clear effort to help the Kenya Revenue Authority (KRA) shore up its collections.

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