Vote and let us have your ideas on how to reduce the public wage bill
The President and the Deputy President at the Cabinet Retreat took a 20% pay cut and were subsequently joined by Cabinet and Principal Secretaries who agreed to a 10% pay cut. Today, the President instructed Parastatal Chief Executives to accept a 20% pay deduction as the current wage bill is unacceptable and unsustainable. In the current financial year the total remuneration to the public service will account for 55% of the tax revenue and 13% of the Gross Domestic Income.
In his speech, his Excellency the President noted that 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.”
The President urged Kenyans today, to make suggestions on ways of reforming the pay system to make it sustainable and compatible with the country’s long-term development agenda objectives.