SRC: Kenya’s wage bill problem is not just about jobs

Kenya's public wage bill is influenced by more than just the number of government employees, according to new data from the Salaries and Remuneration Commission (SRC). While the public service employed 1.023 million people in 2024, the cost of employing these workers across various institutions shows significant variations. The Teachers Service Commission (TSC) was the largest employer with 410,700 staff and a wage bill of Ksh395.85 billion.

In contrast, county governments employed 226,500 people with a wage bill of Ksh215.08 billion, and ministries and other institutions had a bill of Ksh317.56 billion. Parastatals, despite employing fewer workers (100,100), had the highest wage bill of Ksh239.02 billion. This discrepancy indicates that staffing levels alone do not determine the amount spent on salaries.

The commission noted that the quantum per employee, or level of remuneration, is equally important in determining the wage bill. The pressure on the public wage bill is particularly evident at the county level, with personnel emoluments projected at Ksh71.87 billion, which accounts for 40.12% of county revenue, exceeding the 35% threshold.

Meanwhile, the national government's personnel costs were projected at Ksh166.98 billion, equivalent to 28.56% of ordinary revenue, below the threshold. The composition of the public workforce also plays a crucial role, with education accounting for 59.66% of the wage bill in the 2024/25 financial year. The SRC has recognized that reducing employee numbers in essential services could impact service provision, while changes in remuneration can alter the cost of maintaining the existing workforce.

To control the wage bill, the commission has included labour productivity as a key strategy alongside staffing and remuneration. This approach reflects the broader fiscal challenge Kenya faces, as the government must fund essential public services while keeping personnel costs sustainable relative to revenue.