Counties wage bill to hit Sh116bn by June this year

The salaries and allowances of workers in the county governments is set to increase by Sh1.4 billion by the end of this year, a report has shown.

According to the economic survey report 2017 prepared by the Kenya National Bureau of Statistics, the compensation to employees in counties will shoot to Sh116.3billion by June 2017, up from Sh114.9billion spent last year.

The increase, coming at a time the government has called for streamlining of salaries and allowances of civil servants to tame the ballooning wage bill, will translate to a 1.2 per cent rise, the report notes.

“Compensation of employees is expected to account for 32.3 per cent of the total expenditure. It is estimated to register a marginal growth of 1.2 per cent to Sh116.3 billion in 2016/17,” the report released on Wednesday says.

Governors have been accused of spending a chunk of funds disbursed to counties on salaries as opposed to development leading to slowed growth in the devolved units.

The country’s total public wage bill stood at Sh568 billion in the last financial year, well above the 35 per cent threshold, a situation that saw the National Treasury cabinet secretary Henry Rotich order a freeze in recruitments in government to cut spending.

Already, the Salaries and Remuneration Commission has commissioned plans to review the pay in the public sector, a decision it said seeks to arrest the ballooning wage bill ahead of the general election.

In the survey report, the total expenditure of counties is expected to grow by 13.6 per cent to Sh360 billion as at end of June 2017 compared to Sh317 billion spent as at end of June 2016.

The growth will, besides the salaries, be aided by the rise in purchase of goods and services whose figures will increase by 10.2 per cent to Sh74.2 billion and acquisition of non-financial assets at 30.1 per cent growth translating to Sh127.0 billion by the end of 2016/17.

Expenditure on buildings and structures will also increase by 27.6 per cent to Sh100.5 billion, up from Sh78.7 billion spent last year.

The health docket, which is a devolved function, is set to account for 32.8 per cent of the total budget at Sh69.4 billion by the end of the current financial year.

This is while education function is estimated to grow to Sh29.3 billion, up from Sh21.7 billion.

“Spending on general public services is estimated at Sh122.2 billion in 2016/17, and will account for 33.9 per cent of the total outlays. Expenditure on general economic affairs and agriculture functions by County governments are estimated to register significant growths in the review period,” says the report.