Only six counties meet wage bill limit- Report
The SRC has noted that the national government’s personnel emoluments are within the legal ceiling.
Data from the Salaries and Remuneration Commission (SRC) reveals that only six counties adhere to the wage-bill-to-revenue ratio cap of 35% set by the Public Finance Management Act of 2012.
According to the SRC’s wage bill bulletin for the second quarter of the 2024/25 financial year (October to December 2024), Nakuru, Kwale, Busia, Tana River, Narok, and Kilifi are the only counties out of 47 that meet the prescribed threshold.
Kilifi leads in compliance with a ratio of 26.2%, followed by Tana River at 29.4%. Busia has a ratio of 31.0%, Narok stands at 32.0%, and Nakuru is at 33.0%.
Meanwhile, Nairobi has the highest salary-bill-to-revenue ratio among counties, violating the personnel emolument spending limit with a ratio of 55.4%.
Other counties exceeding the prescribed salary spending limits include Machakos and Nyamira, both with a 55.2% ratio, Taita Taveta at 53.2%, Tharaka Nithi at 52.3%, and Laikipia at 52.2%.
The SRC has noted that the national government’s personnel emoluments are within the legal ceiling.
According to the Office of the Controller of Budget, the national government’s expenditure on personnel emoluments is projected to reach Ksh.212.53 billion in the second quarter of the 2024/25 fiscal year, up from Ksh.170.29 billion during the same period last year.
“While the total personal emolument expenditure is expected to rise in absolute terms, its share of total revenue is projected to decrease from 31.7% in Q2 of FY 2023/2024 to 25.7% in Q2 of FY 2024/2025,” the report states.
Public service wage expenditures increased by 6.36% from Sh1.04 trillion in the 2021/22 fiscal year to Sh1.1 trillion in 2022/23. This figure is projected to rise further at a similar rate, reaching Ksh.1.17 trillion in 2023/24.
The Teacher Service Commission (TSC) holds the largest portion of the wage bill, representing 33.8% in 2023/24, followed by the national government, which accounts for 27.12%.
The Salaries and Remuneration Commission (SRC) highlights that the smallest wage bill allocations are made to the Consolidated Fund Services (CFS) at 0.31% and State corporations at 4.7% for the 2023/24 fiscal year.
