Tough Times as Govt Salaries Rise by Ksh70.1 Billion

Tough Times as Govt Salaries Rise by Ksh70.1 Billion

In the fiscal year 2023/2024, the government is projected to spend an additional Ksh70,1 billion on compensation, which is concerning for taxpayers who are already burdened by high taxation.

In a report by the Salaries and Remuneration Commission (SRC) released on Tuesday, wage payments in the country have consistently increased over the last four years.

“Wage payments in the public service grew by 4.8 percent in FY 2021/2022, and are projected to grow further by 6.5 percent to Ksh 1.1 trillion in FY 2022/2023,” read part of the statement.

The government is projected to spend Ksh1.171 trillion in FY 2023/2024, compared to Ksh1.1 trillion in FY 2022/2023.

The Teachers Service Commission (TSC) will receive the largest portion of Ksh395.85 billion, followed by the national government with Ksh317.56 billion, county governments with Ksh215.07 billion, extra-budgetary and social services with Ksh183.99 billion, and state corporations with Ksh55.03 billion.

In FY 2022/2023 and FY 2023/2024, the total wage expenditure is projected to increase by 6.36 and 6.37 percent, respectively.

“The wage bill to ordinary revenue ratio is projected to reduce to 43.54 percent in FY 2022/2023 and 40.45 percent in FY 2023/2024, while the wage bill to total revenue ratio is projected to reduce to 34.6 percent in FY 2022/23 and 32.15 percent in FY 2023/2024,” SRC stated.

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The report also includes a breakdown of the government’s expenditures from April to June of fiscal year 2022/2023.

In its report, SRC revealed that the current regime has spent more on compensation payments than its predecessor.

According to SRC, the government spent Ksh1.035 trillion in 2022 and Ksh1.1 trillion in 2023 between April and June on wage payments.

The commission disclosed in a statement that it had received 70 petitions from public institutions, 50 about benefits and allowances, 11 to collective bargaining agreements, 3 to salary reviews, and 2 to bonuses.

SRC approved requests worth Ksh1.6 billion out of a total of Ksh2.2 billion requests submitted between the two months.

Mengich explained in a previous press briefing that the SRC projected the number of state personnel to increase to approximately 968 million, with health, education, teaching, and security as top priorities.

“But we are yet to achieve the desired ratios for teachers to students, healthcare, and security to population ratios. Those are the areas we will continue to recruit. However, we must watch the wage bill ratio to revenue and GDP,” Mengich stated.

She added that despite salary increases, the SRC would review, determine, and provide advice on compensation and benefits by the principle of fiscal sustainability.

Tough Times as Govt Salaries Rise by Ksh70.1 Billion