Only six counties obey 35% wage-bill-to-revenue ratio as Nairobi leads in non-compliance
Only six counties obey 35% wage-bill-to-revenue ratio as Nairobi leads in non-compliance
Only six counties meet the wage-bill-to-revenue ratio threshold of not more than 35 percent prescribed in the Public Finance Management Act of 2012, data from the Salaries and Remuneration Commission (SRC) shows.
Per the salary regulator’s wage bill bulletin of the second quarter of the 2024/25 financial year (October to December 2024), Nakuru, Kwale, Busia, Tana River, Narok and Kilifi meet the ideal ratio out of the 47 counties.
Kilifi is the most compliant with a 26.2 percent ratio, followed by Tana River at 29.4 percent, while Busia has 31.0 percent, Narok and 32.0 percent, and Nakuru 33.0 percent.
Meanwhile, Nairobi is the biggest violator of county restrictions on personnel emolument spending, with a 55.4 percent salary-bill-to-revenue ratio.
Other counties spending more than prescribed on salaries include Machakos and Nyamira (55.2% ratio), Taita Taveta (53.2%), Tharaka Nithi (52.3%) and Laikipia (52.2%).
SRC notes that the National government’s proportion of personnel emoluments is within the legal ceiling.
The Office of the Controller of Budget reported that the expenditure on personal emoluments in the national government is projected at Ksh.212.53 billion in the second quarter of the 2024/25 fiscal year, compared to Ksh.170.29 billion in a similar period in the last financial year.
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“Although the total PE (personal emolument) is projected to grow in absolute terms, the PE expenditure as a share of the total revenue is projected to reduce from 31.7 percent in the second quarter of FY 2023/2024, to 25.7 percent in the second quarter of FY 2024/2025,” the report notes.
Overall, the public service wage payments grew by 6.36 percent from Ksh.1.04 trillion in the 2021/22 financial year to Ksh.1.1 trillion in 2022/23.
It is estimated to grow further by a similar rate to Ksh.1.17 trillion in 2023/24.
The Teacher Service Commission (TSC) accounts for the highest share of the wage bill at 33.8 percent in 2023/24, followed by the national government at 27.12 percent.
SRC says the least wage bill spending is accounted for by CFS (salaries and wages) at 0.31 percent, and State corporations at 4.7 percent in the 2023/24 fiscal year.
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