State to overhaul payroll for all government employees
Treasury CS John Mbadi vows to overhaul payroll for all government employees in a move to moilise more resources
Treasury CS John Mbadi vows to overhaul payroll for all government employees in a move to moilise more resources.
Newly appointed Treasury Cabinet Secretary John Mbadi on Monday vowed to integrate payroll for government employees with the Integrated Financial Management Information System (IFMIS) as he officially took over the position.
Speaking during the handover ceremony in Nairobi, Mbadi reiterated that the integration was long overdue and must be done.
“Clearly if we cannot integrate our payroll systems from the state departments to IFMIS, which is our parent accounting system, and all the way to the Kenya Revenue Authority (KRA) then we don’t know what we are doing,” he told the press.
“So anyone who is standing in the way of that reform please give way. Please allow Kenya to move forward. Don’t be an obstacle. Payroll reforms must be done.”
He noted that the new reforms were paramount to enable the government to raise more revenue after the collapse of both the Finance Bill 2024 and Finance Bill 2023.
“We don’t have an option now that resources have become scarce. We must prudently and efficiently use public resources by making public procurement systems efficient and not open to abuse. We must make sure end-to-end procurement works,” he added.
“If there are people who have benefited from the chaotic system, you have benefited enough. Now allow Kenyans to get value for money.”
The new CS noted that he was hellbent on boosting the state revenues and embraced strategies instituted by KRA. He eyes increasing the revenues by roughly Ksh400 billion.
“If we could increase our revenue collection to GDP (Gross Domestic Product) by just about 3 percent, I am sure that will give us almost Ksh400 billion additional. That will sort out a lot of our problems, bridge the budget deficit, and get the country moving forward,” he explained.
The outgoing Treasury CS Njuguna Ndung’u cautioned Mbadi that after the collapse of the two Finance Acts, the Ministry was faced with a challenge of high tax expenditures which stood at 2.94 percent.
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“The tax expenditures, which is what we wanted to deal with in the current fiscal year, stands at 2.94 percent. Just imagine if you were to reduce those tax expenditures by even 2 per cent, it would add to a very big margin of revenues,” Ndung’u stated.
“The short-term debt, especially bills and bonds, have created a massive liquidity challenge in the country. That is why sometimes we took up to three weeks to clear the payroll because of that liquidity problem but it is not a solvency problem.”
Ndung’u, therefore, advised Mbadi to formulate a strategy that would free the Ministry of the solvency problems.
“What I would encourage my friend CS John Mbadi, this liquidity constraints require strategic options to avoid them creating a solvency challenge. This requires a very strong signaling approach,” he added.
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