Human resource operations in the public service are headed for a shake up as the government moves to reduce its wage bill to 35 per cent against revenue by the year 2028.
- A nine-point resolution adopted during the third national wage bill conference in Nairobi points to uncomfortable labour conversations in the public service sector in coming days.
- All institutions at both the levels of government will also be required to migrate their payrolls to the human resource information system Kenya by June next year.
- As part of the new reorganization, there is going to be a review of the Kenyan model for performance management by December 2024 to shift from measurements of activities and inputs to outputs and outcomes.
The adopted resolutions, which will affect employees of both national and county governments, call on the public service institutions to review and rationalize staff establishment with a view to align to affordability, fiscal sustainability, right composition, skill set and fit for purpose organization structure that will facilitate the institutions to achieve the 35 per cent wage bill by 2028.
Lyn Mengich, Chairperson of the Salaries and Remuneration Commission (SRC) said all institutions of national and county governments are required to adopt and build capacity on performance contracting as an accountability tool in line with the medium-term plan 4 with effect from 1st July 2024. “In this regard, public institutions to incorporate productivity measurements, process re-engineering, technology and skills development as key drivers to implementation,” she said.
All county executive committee members, ministries, departments, and agencies are required to refine their strategies and action plan. SRC said the strategy and the action plan should be submitted to respective ministries by 30th June 2024 for approval. The national treasury and controller of budget to progressively monitor the trajectory and ensure that provision of personnel emoluments do not exceed 35 per cent threshold by 30th June 2028.
Other measures to reduce the wage bill will be around elimination of overlapping mandates and dealing with fraud that has seen a number of civil servants secure jobs with fake certificates.
Speaking during the Third National Wage Bill Conference 2024 at the Bomas of Kenya, Nairobi, President William Ruto said he expects radical improvement in future audits by all government ministries, departments and agencies.
The President noted significant progress in managing the public wage bill, highlighting its reduction from 51 per cent to 46 per cent currently.
“As National Government, we have taken the lead with a commitment to reduce the wage bill to 35 per cent of revenue by 2027,” he said.
The President said the government is keen on enhancing revenue collection through digitisation and fighting corruption in the public service.
He said increasing the country’s revenue will improve the wage bill to revenue ratio. “I believe we can raise an extra KSh 500 billion, if not KSh 1 trillion, just by digitising the Kenya Revenue Authority,” he said.
He pointed out that the government is also creating alternative pathways to employment to ease the pressure on the PSC which, he said, cannot hire all job seekers.
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