Tough Times as Govt Salaries Rise by Ksh70.1 Billion

The government is projected to spend Ksh70.1 billion more on wages in the financial year 2023/2024, painting a concerning picture for taxpayers who are already grappling with heavy taxation.
In a report by the Salaries and Remuneration Commission (SRC) released on Tuesday, wage payments in the country have steadily increased over the last four years. 
“Wage payments in the public service grew by 4.8 per cent in FY 2021/2022, and are projected to grow further by 6.5 per cent to Ksh 1.1 trillion in FY 2022/2023,” read part of the statement.
In FY 2023/2024, the government is projected to spend Ksh1.171 trillion compared to Ksh1.1 trillion in the current financial year.

        TSC CEO Nancy Macharia before the National Assembly committee on Monday, May 15, 2023

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        Parliament of Kenya

According to the data, the Teachers Service Commission (TSC) is set to take the largest share of Ksh395.85 billion, followed by the national government Ksh317.56 billion, county governments Ksh215.07 billion, extra-budgetary and social services Ksh183.99 billion, and state corporations Ksh55.03 billion.
The commission added that the total wage bill is projected to continue growing, but at a rate of 6.36 per cent in FY 2022/2023, and 6.37 per cent in FY 2023/2024.  
“The wage bill to ordinary revenue ratio is projected to reduce to 43.54 per cent in FY 2022/2023 and 40.45 per cent in FY 2023/2024, while the wage bill to total revenue ratio is projected to reduce to 34.6 per cent in FY 2022/23 and 32.15 per cent in FY 2023/2024,” SRC stated.
The report also detailed the amount spent by the government between April and June financial year 2022/2023.
In the report, SRC revealed that the current regime has spent more than the previous regime regarding wage payment.
According to SRC, in 2022, the government spent Ksh1.035 trillion, while in 2023, Ksh1.1 trillion was spent on wage payments between April and June. 
In a statement, the commission disclosed it had received 70 requests from public institutions, 50  on allowances and benefits, 11 on collective bargaining agreements, 3 on salary reviews, and 2 on bonuses.
SRC approved Ksh1.6 billion worth of requests from the total of Ksh2.2 billion requests made between the two months. 
In a past press briefing, Mengich explained that SRC projected the number of state employees to increase to around 968 million, with key sectors of health, education, teaching, and security given top priority. 
“But we are yet to achieve the desired ratios for teachers to students, healthcare, and security to population ratios. Those are the areas we will continue to recruit. However, we must watch the wage bill ratio to revenue and GDP,” Mengich stated.
She added that despite increasing salaries, SRC would also review, set, and advise on remuneration and benefits within the principle of fiscal sustainability. 

        A photo of Salaries and Remuneration Commission (SRC) Chairperson Lyn Cherop Mengich.

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        SRC Kenya