More hiring, bigger paychecks as public sector wage bill jumps by Sh40bn
Public sector wage bill hit Sh1.287 trillion in the year ended June 2026.
Kenya's public sector wage bill is expected to rise to Sh1.287 trillion in the financial year that ended in June 2026, due to increased hiring and salary reviews, putting pressure on the government to allocate funds for development projects and essential services like healthcare. The Salaries and Remuneration Commission (SRC) reported that the wage bill grew by Sh40 billion from the previous year, with the biggest contributors being the hiring of teachers, nurses, and medical personnel.
The government's efforts to address teacher shortages and improve healthcare services through salary adjustments have contributed to the higher wage bill, which now stands at Sh1.247 trillion for the 2024/25 financial year. The rising wage bill reduces the government's ability to self-fund development projects and repay debts, forcing Treasury to borrow money or adopt innovative funding strategies.
Despite the impact on development expenditure, the Treasury claims the increase in public sector wage bill as a share of ordinary revenue will decrease to 40.68 percent in 2026 from 41.82 percent in the previous year, citing fiscal consolidation efforts.
Written by urgent.news from Nation Africa's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
