This archive report was first published on 29 November 2019.
Kenya's National Treasury is facing a significant budget deficit, with a substantial portion attributed to the country's massive wage bill. A closer examination of the wage bill reveals a complex web of issues, including thousands of ghost workers and corrupt officials who perpetuate a fake payroll system to siphon off public resources.
According to reports, the government has consistently spoken about cleaning up the payroll, but with little success. The introduction of the county system has further exacerbated the problem, with authorities engaging in reckless employment and creating duplicate roles at a significant cost to taxpayers.
A recent audit in Nairobi revealed a staggering 10,000 ghost workers, highlighting the scale of the issue. Since the 1990s, each administration has attempted to rectify the payroll, but the problem persists.
Another significant contributor to the ballooning wage bill is the payment of unmerited allowances to civil servants. A report by the Salaries and Remuneration Commission (SRC) indicates that last year alone, the government paid over Sh300 million in allowances to officers for tasks they were already being paid to perform.
The SRC report also highlights the abuse of allowances, with some officials claiming ridiculous reasons for payment. For instance, former Treasury Cabinet Secretary Henry Rotich and Principal Secretary Kamau Thugge were paid Sh3.7 million for supervising the budget-making process, a core duty for which they receive a full salary.
Unfortunately, the SRC lacks the capacity and instruments to effectively regulate payroll spending, relying on issuing circulars and guidelines. Acting National Treasury Cabinet Secretary Ukar Yatani has committed to budget cuts, with the unjustified allowances being the first to go. Strict auditing and cleaning up of the payroll are imperative to reducing the wage bill and minimizing government spending.
