A public sector wage bill survey says that without urgent reforms and austerity measures, the country's cash crisis will worsen and services could fall apart.
The Salaries and Remuneration Commission's survey released on Tuesday cited manual systems, disparities in pay structure, lack of standardised recruitment policies and lack of career progression guidelines are a few of many problems.
Another is an ageing workforce.
These issues are contributing to the public sector wage bill of Sh733 billion.
The Public Sector Wage Bill Survey was carried out in 32 counties and 72 state corporations last year with a view to establishing controls in setting and managing wages.
Speaking when he released the report, SRC vice chairman Dalmas Otieno urged the two levels of government to swiftly address the worsening crisis.
"There is urgent need for the national government and counties to institute reforms that stress efficiency in public service," he said at a Nairobi Hotel.
The former Rongo MP said counties and the national government must creatively attracting and retaining the best staff through clear- cut career progression.
"This will address wastage because when you have competent staff there is efficiency in productivity," Otieno said.
The report established that the ballooning public wage bill has hit a record and the situation will worsen without urgent austerity measures.
The SRC says the upward trend is driven by fat salaries, allowances, pensions and gratuities.
"The public service is characterised by an ageing population, a situation that needs government attention so services are not compromised," SRC said.
The report also revealed huge disparities in allowances and other benefits, saying they must be rationalised to ensure uniformity across all institutions.
It identified numerous problems facing both levels of government including a bloated workforce, ineffective manual systems and lack of harmonised recruitment guidelines.
"Efficient delivery of public service requires prudent management of the public wage bill at all levels," the report read.
The report established that while the majority of government institutions have human resource policies, suggesting there are good controls on recruitment and promotions, staff establishment is not used to guide recruitment.
