Uhuru calls for a reduction of wage bill

President Uhuru Kenyatta while addressing a joint Senate and National Assembly session, on Tuesday. [Photo: Godevi Asusta/Standard]

By James Anyanzwa

Nairobi, Kenya: President Uhuru Kenyatta has directed all arms of Government to work towards reducing the ballooning public sector wage bill.

The President who was deeply concerned with the hefty pay perks for public servants fell short of ordering a pay cut in his second public address during the official opening of the Eleventh Parliament in Nairobi on Tuesday. 

He called for prudent management of public finances by officers serving in the Executive, Parliament and the Judiciary saying the current wage bill is unsustainable.

“Today recurrent expenditure is reaching unsustainable levels, squeezing out resources meant for development. We must keep the public wage bill in check,” he said.

Uhuru said in the current financial year the total estimated wage bill is Sh458 billion which is slightly over 12 per cent of the country’s gross domestic product (GDP), and well above the international accepted standard of 7 per cent, accounting for almost half of the revenue collected by Government.

“This is unsustainable and poses a serious threat to the funding of important development projects, and has the potential to severely affect the country’s economic prospects,” he said.

Uhuru and his deputy William Ruto had earlier warned that the Kenyan wage bill is not sustainable and that his Government would consider freezing pay raises or effecting salary cuts.

Uncompetitive country

The two said that Kenya risked being the most uncompetitive country in the sub-Saharan region because of paying high wages that were not sustainable. It is feared that with a high wage billPresident Uhuru cannot fulfill meaningful development promises that he made to Kenyans and the Kenyan economy would remain stagnant or grow insignificantly as there will be no money to spur economic growth.

“Our focus both as the Executive and the Legislature must be on reducing the cost of living and making Kenya much more competitive thereby increasing opportunities while improving the standards of living. Indeed, that shall be the centerpiece of our Government,” said Kenyatta.

The President’s directive may not auger well with MPs and Governors who have made incessant demands for salary increment with some even threatening to push for disbandment of the Salaries and Remuneration Commission for slashing their salaries and allowances.