The fact that our country spends 12 per cent of its GDP on wages against an international average of 7 per cent is something to worry about because the implications are stark.
As we indicate in a special report in this newspaper, Sh458 billion goes to paying salaries and wages. This puts the recurrent expenditure at an estimated 70 per cent of total revenue per year.
It is this grim outlook that prompted the Salaries and Remuneration Commission to raise the red flag by pointing out that the country is headed in the wrong direction and needs to align its priorities to its ambitions. Personal finance gurus say that when you spend a big percentage of your income on consumables without putting aside savings, improving your economic status will remain a pipe dream.
The maxim holds true for nations. Although the recurrent expenditure in most countries — just like it is in Kenya — is more than what goes to development, it is imperative that the government contains it at levels that allow a fair amount to go to development.
Spending for development is what spurs economic growth and if development is starved of funding, any economy can get to at the tipping point where it cannot even support the recurrent expenditure. In any case, the recurrent expenditure is meant to support civil servants because they provide public services and supervise projects.
It is against this background that President Uhuru Kenyatta in his speech at the opening of the Eleventh Parliament last month expressed his desire to contain the rising wage bill .
The significance of his choice of platform to raise the matter was a pointer in the right direction because Members of Parliament have been agitating for an increase of their salaries and allowances. County representatives, governors and senators have also joined the bandwagon.
Whereas MPs are arguing that Parliament is an independent arm of government and that it was wrong to have a commission regulate their salaries, they must understand that it was precisely because legislators in the previous parliament could arbitrarily raise their salaries at will that Kenyans created the SRC to bring fairness and order in the public sector wage bill.
President Uhuru’s mettle will obviously be tested by these politicians demands that reek of greed from every pore. He must stand his ground, he must stand on the side of Kenyans.
Quite apart from containing the wage bill, the first task the new Cabinet Secretaries should seek to accomplish is reduce wastage of public resources. Here are a few: First, the magnitude of wastage in the public service is monumental. Government officers engage in many unnecessary local and foreign trips that do not add value to the public.
Secondly, with the reduction of ministries, the Cabinet Secretaries should rationalise their staff component to ensure that every employee adds value.
Thirdly, corruption continues to scheme off resources meant for development. Procurement of government goods and services is a cesspit of graft. Even with e-government, a lot of money still goes to stationery.
Fourthly, fuel guzzlers are back in a big way and the big shots in government are sparing nothing to enjoy the trappings of power at the expense of the common good.
It was heartening for the President to reiterate his stand on the wage bill when he addressed mourners at Kilonzo Mutula’s burial. He must not relent, he must not equivocate.
