The Salaries and Remuneration Commission (SRC) revealed on Wednesday that the Kenyan government has made significant progress in reducing the public wage bill over the last six years. In a post on X (formerly Twitter), the commission highlighted key measures taken to curtail public spending, including cuts to various allowances for public service employees.
“SRC has reduced the total public wage bill by advising on DSAs and abolishing some allowances,” the post read, referencing the Daily Subsistence Allowance (DSA) as well as allowances that were previously granted to Cabinet Secretaries (CSs), Members of Parliament (MPs), and Members of County Assemblies (MCAs).
Notable reductions include the elimination of ministerial allowances for CSs and plenary sitting allowances for MPs and MCAs. Furthermore, the SRC implemented a taxable car allowance for CSs, Principal Secretaries (PSs), and judges. These cuts also extended to task forces, retreats, and internal institutional committees. According to the SRC, these measures have significantly contributed to the continuous decline in the public wage bill.
In August, the SRC reported that the wage bill had decreased to 46.6% of ordinary revenue for the 2022/2023 financial year, down from 51.54% in 2017/2018 and 47.06% in 2021/2022. The commission further projects a wage bill ratio of 39.22% for the 2023/2024 financial year, indicating continued progress.
However, despite this positive trend, the wage bill ratio still exceeds the recommended threshold of 35% of national revenue. The government has set a target to meet this threshold by 2028 through ongoing expenditure reductions and enhanced revenue generation.
