SRC advises salaries paid to civil servants should not exceed 35 per cent of total revenue collected
- Published By Jedida Barasa For The Statesman Digital
- 7 months ago
The Salaries and Remuneration Commission (SRC) has proposed that salaries paid to public servants should not exceed 35 per cent of the total revenue collected.
Speaking at a stakeholders’ forum in Nairobi on Friday, SRC Chairperson Lyn Mengich highlighted concerns over the government's high wage bill, emphasizing that it limits its capacity to deliver services despite available resources.
She further mentioned that currently, 47.3 per cent of revenue is allocated to the wage bill, with over 60 per cent directed towards debt repayment.
“We live in a resource-scarce nation. An expenditure on the public wage bill, government oppression and maintenance development and our international commitments, all compete for limited resources that we generate as revenue in our country,” she said.
“We will always have a constraint on the resources. 47.3 per cent of our revenue goes to the wage bill and more than 60 per cent goes to debt, and therefore we must borrow.”
Also in attendance was Public Service, Performance and Delivery Management Cabinet Secretary Moses Kuria, who commended the Central Bank of Kenya (CBK) for stabilizing the Kenyan shilling, attributing it to deliberate policy in the administration.
He also cited some considerable improvements like inflation and forex cover, noting that the country has paid off Ksh.1.5 trillion due to improved currency.
“On monetary performance, the Governor of the CBK is doing an amazing job; our exchange rate is Okay, and inflation is under control....forex cover is improving, and just by deliberate policy from this administration,” Kuria stated.
“By deduction or strengthening of the shilling on our debts obligation within the last one month, we have shaved off Ksh.1.5 trillion in debt simply because of the back on an improved currency."
Kuria however noted that the high wage bill is robbing Kenyans' of their hard-earned money, noting that they work for almost one million public servants, who he described as “vultures and scavengers.”
"This is not a theoretical discussion, it is a question of morality, ethics, and fairness," stated the CS.
“In the morning Kenyans are working for one million vultures and scavengers, and in the afternoon they are working for debts. When you see someone asking for a pay rise, remind them they are vultures."
He went on to state that the money allocated for development purposes is acquired through borrowing, which comes with exorbitant interest rates.
"We borrow to invest because all our development budget is fully funded by borrowing," he said.
"Let us not call them donors anymore, they are lenders in business and are very happy to find people who are foolish enough to continue spending everything they have and borrow at exorbitant interest rates."
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