Major Salary Cuts Loom as Moses Kuria Proposes New Target for Wage Bill
Moses Kuria, the Cabinet Secretary for Public Service, is urging Kenyans to break their silence regarding the significant portion of the country’s revenues being consumed by civil servants.
The candid CS criticized civil servants, referring to them as “selfish” for contributing to the escalation of the wage bill.
Addressing reporters in Nairobi, Kuria voiced his confusion regarding the consistently elevated wage expenditure, which presently accounts for 43 percent of revenues.
“This is a question of morality. It’s a question of ethics. It is not even a question of economics and other high-value principles,” Kuria bemoaned.
“It is a question of selfishness. How can one million people be so selfish?” he added.
During the gathering at the Nairobi Safari Club on April 12, arranged by the Steering Committee of the Third National Wage Bill Conference 2024, Kuria raised concerns about the ethical and moral reasoning behind excessive expenditure.
“How can you agree to shoulder the burden of one million people for so long? How can you allow one million people to gobble up all the money you make?” he queried the audience, emphasizing the urgent need for reform.
Kuria’s statements precede the eagerly awaited conference set for April 15 to 17, to address this urgent matter. The aim is to decrease the ratio of the wage bill to revenue to 35 percent by 2028, potentially leading to annual savings of around Ksh80 billion for the country.
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Lyn Mengich, who chairs the Salaries and Remuneration Commission (SRC), echoed Kuria’s remarks, emphasizing the wider economic effects of implementing such a decrease.
“If we can, for example, guarantee a Ksh80 billion to the Ministry of Roads year on year, then we could restart stalled projects that have significant multiplier effects on other sectors and improve the quality of life for our people,” Kuria explained.
Advocating for a reduced wage bill isn’t solely about financial equilibrium; it’s also aimed at reigning in unnecessary government spending.
“We have to do something about our salaries, debt, and the mandazis and doughnuts we consume,” Kuria added, pointing out areas where fiscal discipline could be immediately applied.
Over time, the portion of total revenue allocated to wages decreased from 57.33 percent in the 2013/2014 fiscal year to 48.1 percent in 2018/2019, primarily due to revenue expansion and efforts led by the SRC.
Despite these endeavors, it is widely agreed that more severe actions are required.
Government statistics indicate that maintaining a wage bill that does not exceed 35 percent of revenue is crucial and aligns with the regulations outlined in the Public Finance Management (PFM) Regulations of 2015.
Major Salary Cuts Loom as Moses Kuria Proposes New Target for Wage Bill