President William Ruto on Tuesday, July 4, announced that his administration was considering trimming Government's recurrent expenditure with a special focus on civil servants' salaries.
Speaking during the swearing-in ceremony of two Principal Secretaries at State House, the Head of State explained that Kenya had amassed an unstainable wage bill.
He noted that the ballooning wage bill limited the government’s capacity to delve into development projects.
“The government is keen on striking the right balance between the development and recurrent expenditure,” the President stated noting that his administration was spending more resources on paying salaries than required.
According to the Head of State, the Treasury was spending 46 per cent of the country’s revenue to pay salaries and wages every month.
“This is way above our target of 35 per cent. We must work towards bringing down the figure,” the President warned.
Defending the move, Ruto explained that his administration will ensure the country’s development plan is not starved of funds.
According to the Salaries and Remuneration Commission (SRC), the government used Ksh1 trillion to pay salaries in the 2022/2023 financial year.
This was 51 per cent of revenue collected in the country and the percentage will go higher if the Commission goes ahead with its plan to increase salaries for civil servants by 8 per cent.
The statement came a few days after the President approved an increase in salary for select civil servants but opposed an increment for high-ranking state officers.
Ruto opposed the pay rise until SRC tabled the international best practice in order to reduce the gap between those who work for the people of Kenya and the Kenyans themselves.
“Because of the economic times we live in, we have approved that salaries of other civil servants can be adjusted beginning tomorrow.
“For the other people, the state officers, myself, my deputy, cabinet secretaries, permanent secretaries and members of parliament, ours will wait,” the President stated on Friday, June 30.
