Work jointly to manage wage bill - Koskei to SRC, PSC

Head of Public Service Felix Koskei has called for closer cooperation between the Salaries and Remuneration Commission (SRC) and the Public Service Commission (PSC) to address the growing wage bill that is threatening to overshadow development spending.

Speaking on Tuesday during a consultative meeting with members from the two commissions, Koskei raised concerns that excessive wage allocations are crowding out funds for essential development projects.

He stressed that while the SRC controls wage growth and the PSC oversees staffing levels, both agencies must work together to ensure a sustainable wage bill without services being affected.

“I ask you to reflect together. If you work jointly, the public sector wage bill will remain sustainable without compromising service delivery,” he said.

The Head of Public Service also called for the harmonisation of allowances such as travel, housing, and hardship benefits, which he said form a significant part of government expenditure.

He stated that with the SRC mandated to set allowances for different sectors, the PSC has a role in administering them.

"Unless you work together, we will end up with officers in similar grades receiving widely varying allowances," he said.

Koskei also emphasised the importance of strengthening staff training, capacity building, and support.

According to him, institutionalising the public service is crucial for insulating public servants from political influences.

According to SRC, the country's wage bill to ordinary revenue ratio declined from 54.77 per cent in FY 2020/2021 to 47.06 per cent in FY 2021/2022 and is estimated to have reduced further to 46.64 and 46.23 per cent in FY 2022/2023 and 2023/2024, respectively.

Speaking during the Third National Wage Bill Conference in April 2024, President William Ruto said the government will implement several measures to achieve a 35 per cent wage bill ratio to revenue.

He said the government aspires to achieve the milestone in the next three years.

He said there has been significant progress in managing the public wage bill, highlighting its reduction from 51 per cent to 46 per cent.

"We aspire to deal with this challenge in the next three years and bring it to 35 per cent," he said.