- Controller of Budget Margaret Nyakang’o sounded the alarm that high wage bills are constraining funding to other programmes.
- She recommends they explore other revenue streams to expand the revenue base.
Image: CHARLENE MALWA
At least 34 counties have been cited for breaking the law requiring that state agencies keep the wage bill below 35 per cent of their revenue.
The devolved units spent more than 35 per cent of their total actual revenue on wages and benefits for employees in the financial year 2020-21.
The Public Finance Management (County Governments) Regulations, 2015, require that county governments’ wage bill shall not breach the set caps.
Baringo topped the list after using 57.4 per cent of its total revenue on wages and benefits followed by Bomet at 55.1 per cent and Bungoma at 53.4 per cent.
“In this regard, the wage bill remains a major challenge hence the need for concerted effort to find viable solutions to keep the wage bill within the legal threshold,” Treasury CS Ukur Yatani said.
Busia used 53.2 per cent of its revenue followed by Elgeyo Marakwet (53.1 per cent), Embu (47.8 per cent), Garissa (47.7 per cent), Homa Bay (46.9 per cent), Isiolo (45.8 per cent), Kajiado (45.7 per cent), Kakamega (45.5 per cent), Kericho (45.1 per cent), Kiambu (44.8 per cent), Kilifi (44.7 per cent), Kirinyaga (43.9 per cent), and Kisii (43.6 per cent).
Also in breach was Kisumu which spent 42.6 per cent, Kitui at 41.5 per cent, Kwale at 41.4 per cent, Laikipia at 41.3 per cent, Lamu at 40.0 per cent, Machakos at 40.7 per cent, and Makueni at 40.4 per cent.
Mandera, Marsabit, Meru, Migori, Mombasa, Murang'a, Nairobi City, Nakuru, Nandi, Narok, and Nyamira spent between 35.5 per cent and 39.9 per cent of their revenues on salaries.
The 2022 Draft Budget Policy Statement, revealed that only 13 county governments' expenditure on wages and benefits for its public officers, were within the legal threshold.
The county government of West Pokot spent 16.7 per cent of its total actual revenue on wages and benefits for its employees followed by Wajir and Vihiga counties at 27.0 per cent and 28.1 per cent respectively.
Nyandarua, Nyeri, Samburu, Siaya, Taita Taveta, Tana River, Tharaka Nithi, Trans Nzoia, Turkana, and Uasin Gishu were among the compliant counties having used 33 per cent to 30 per cent.
In her report, Controller of Budget Margaret Nyakang’o sounded the alarm that high wage bills are constraining funding to other programmes.
“The County Public Service Boards should establish an optimal staffing structure to ensure expenditure on personnel emoluments complies with the law,” Nyakang’o said.
She recommends that county governments explore other revenue streams to expand the revenue base and reduce the high percentage of expenditure on personnel emolument.
For Bungoma, the high expenditure on wages was attributed to the collective bargaining agreement that the county government signed with the medical staff and increased salaries for ECD teachers.
In Busia, staff inherited from the defunct local authority whose wage and other benefits were increased through a CBA signed before 2013, caused the surge.
The county government also recruited additional staff because employees inherited from the defunct local authority lacked the adequate capacity to implement government programmes.
In Mombasa, the county acknowledged the high wage bill and attributed it to staff inherited from the defunct Municipal Council of Mombasa and industrial demands by health workers.
Among measures it sought to put in place to tame the high wage bill were freezing of hiring and non-review of job description.
Vihiga pay breach was blamed on the salary for unionised staff, mainly medical staff and employees inherited from the defunct local authority.
Kwale officials attributed the high growth of the wage bill to new ECD construction and dispensaries and the growth of the salaries as a result of the annual staff increment.
-Edited by SKanyara