CS Mbadi » Capital News

NAIROBI, Kenya, June 12 – The government has announced fresh efforts to rein in the public wage bill, with plans to fully implement a unified human resource management system and review public service allowances to ensure fiscal sustainability.

Treasury Cabinet Secretary John Mbadi, while presenting the 2024/2025 budget estimates in Parliament, said the unified HR management system will be rolled out across all public sector entities by July 2025.

The initiative aims to boost efficiency, tighten wage bill oversight, and improve the overall use of public funds.

“The government will fully implement the unified human resource management system across all public sector entities by July 2025. This initiative is part of a broader effort to enhance public sector efficiency, improve management of the wage bill, and ensure effective public utilization of resources,” said Mbadi.

As part of the plan, the Salaries and Remuneration Commission (SRC) will also intensify its phased approach to streamline allowances in the public service.

The goal is to enhance transparency, accountability, and fairness while ensuring the total compensation bill remains affordable.

“The SRC continues to sustainably reduce the allowances in public service through a phased approach aimed at streamlining allowances to improve transparency, accountability, equity, and fairness.”

According to Mbadi, SRC will progressively review allowances and benefits in future collective bargaining agreements, aligning them to the allowances policy guidelines for the public service.

These measures come amid growing concern over Kenya’s high wage bill-to-tax revenue ratio, which continues to limit the government’s ability to invest in development projects and essential services.

 Mbadi asserted that Treasury has prioritized public sector reforms as a key strategy in restoring fiscal stability and accelerating economic growth.