The labour, public service, and remuneration sectors have faced significant changes after the National Assembly Parliamentary Committee on Budget and Appropriations made significant amendments to the proposed 2025/26 budget estimates, revising allocations.
The review, prompted by variations from the Budget Policy Statement (BPS), revealed that several state departments requested higher allocations than initially approved, mentioning operational shortfalls and the need to complete ongoing projects.
Among the affected departments are the State Department for Labour and Skills Development, the State Department for Public Service and Human Capital Development, the Public Service Commission, and the Salaries and Remuneration Commission.
The State Department for Labour was allocated Ksh5.043 billion, consisting of Ksh4.255 billion for recurrent expenses and Ksh788.6 million for development. However, the department was allocated less money by Ksh1.177 billion, short of the approved ceiling in the 2025 BPS.
In response to the budget shortfall, the committee recommended a Ksh70 million increase for the Labour, Employment, and Safety Services Programme, which supports labour migration and export.
Additionally, Ksh29 million was added for manpower development under the World Bank-funded NYOTA programme, though Ksh49 million was deducted from the manpower development programme. The department's budget was recommended to be increased to Ksh5.112 billion.
The State Department for Public Service and Human Capital Development was also a big winner. Initially, it was allocated Ksh9.379 billion, which the committee recommended to be increased to Ksh9.644 billion. An increase of Ksh265 million for Huduma Centres and tuition complexes.
The department had alleged that it was facing challenges affecting key projects like the Kenya School of Government and Huduma Centres, necessitating the additional funds.
According to the recommendations, the Public Service Commission suffered a major loss. Initially, it was allocated Ksh3.691 billion, but the committee recommends it be cut to Ksh3.561 billion, a reduction of Ksh95.3 million for administrative costs.
The Commission will now operate with an amended recurrent estimate of Ksh 3.561 billion, with development funding entirely removed.
Similarly, SRC has also suffered significant cuts; initially, it was allocated Ksh511.7 million, exclusively for recurrent expenses. However, this amount exceeded the approved BPS ceiling by Ksh29.9 million, leading to a budget cut to Ksh 481.81 million.
The SRC Chairperson warned that the revised allocation would strain critical operations, including the fourth remuneration cycle review and stakeholder engagement initiatives.
Despite requests for additional funds, the committee maintained a cautious approach to budget revisions, ensuring that allocations remain within viable limits.
