Connect with us

Hi, what are you looking for?

Kenyatta warned those unwilling to take a pay cut to exit government/PSCU


We must snare wage bill monster, says Uhuru

Kenyatta warned those unwilling to take a pay cut to exit government/PSCU

Kenyatta warned those unwilling to take a pay cut to exit government/PSCU

NAIROBI, Kenya, Mar 10 – President Uhuru Kenyatta says the current public wage bill is an obstacle to implementation of Vision 2030 flagships projects and must be contained.

The President said the growth in public sector wage bill is unsustainable and unacceptable pointing out that in the current financial year, the total remuneration in the public service will account for 55 percent of the tax revenue and 13 percent of the Gross Domestic Product (GDP).

“Yes, it is good to pay our people well but this must be done in a manner conducive to our development agenda,” the President said.

He said implementation of mega projects including the Standard Gauge Railway, the South Sudan and Ethiopia Transit Corridor and the million-acre irrigation programme in Galana would suffer if the development expenditure continued to dwindle due to pressure of wages.

“The monster threatens not just our future, but our present too, since it compromises the stability of our present economic framework,” he said.

The President also expressed the need to streamline the management of salaries at all levels of Government to remove the disparities in remuneration in the public service both at national and county levels.

“Although the Salaries and Remuneration Commission, and the Public Service Commission will take the lead in creating rules and principles for containing the disparities, I would urge every Kenyan to make their views heard on this matter,” the President said.

The President said the Government is auditing its payroll to weed out ghost workers and ensure only legally-hired employees are paid a salary.

“In this context, I urge you all to give maximum cooperation to the Ministry of Devolution and Planning, which is carrying out this exercise,” he said.

He added that the Government has already carried out a comprehensive review of parastatals to reduce project slippages.

Advertisement. Scroll to continue reading.

The President spoke on Monday when he launched the “National Debate on Public Wage Bill Sustainability.”

During the conference, he ordered parastatal chiefs to take a 20 percent pay cut or quit.

He said his Government was instituting major reforms in the parastatal sector and chief executives who may not be willing to conform can resign.

The President also challenged the National Social Security Fund-NSSF to change its investment policies and adopt new approaches which will benefit the contributors.

President Kenyatta and Deputy President William Ruto last week took a 20 percent pay cut while Cabinet and Principal Secretaries took a 10 percent salary reduction.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...