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Kenya Committed to Reduce Wage Bill

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Kenya Committed to Reduce Wage Bill

(3 Minutes Read)

A nine-point resolution adopted during the third national wage bill conference in Nairobi points to uncomfortable labor developments in the public service sector in the coming days

Human resource operations in the public service are headed for a shake-up in the coming months as the government moves to reduce its wage bill to 35% against revenue by the year 2028. A nine-point resolution adopted during the third national wage bill conference in Nairobi points to uncomfortable labor developments in the public service sector in the coming days.

All institutions at both levels of government will also be required to migrate their payrolls to the human resource information system in Kenya by June next year. As part of the new reorganization, there is going to be a review of the Kenyan model for performance management by December 2024 to shift from measurements of activities and inputs to outputs and outcomes.

The adopted resolutions, which will affect employees of both national and county governments, call on the public service institutions to review and rationalize staff establishment to align to affordability, fiscal sustainability, the right composition, skill set, and fit-for-purpose organization structure that will facilitate the institutions to achieve the 35% wage bill by 2028.

Lyn Mengich, Chairperson of the Salaries and Remuneration Commission (SRC) said all institutions of national and county governments are required to adopt and build capacity on performance contracting as an accountability tool in line with the medium-term plan 4 with effect from 1st July 2024.

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All county executive committee members, ministries, departments, and agencies are required to refine their strategies and action plans. SRC said the strategy and the action plan should be submitted to respective ministries by 30th June 2024 for approval. The national treasury and controller of budget to progressively monitor the trajectory and ensure that the provision of personnel emoluments does not exceed the 35%  threshold by 30th June 2028.

Other measures to reduce the wage bill will be around the elimination of overlapping mandates and dealing with fraud that has seen a number of civil servants secure jobs with fake certificates.

President William Ruto recently said he expected radical improvement in future audits by all government ministries, departments, and agencies.

The President noted significant progress in managing the public wage bill, highlighting its reduction from 51% to 46%currently. The President said the government is keen on enhancing revenue collection through digitization and fighting corruption in the public service. He pointed out that the government is also creating alternative pathways to employment to ease the pressure on the PSC which, he said, cannot hire all job seekers.