President William Ruto announced on July 4 that his administration was contemplating reducing the government's recurrent expenditure, with a specific focus on civil servants' salaries. In a ceremony at State House, where two Principal Secretaries were being sworn in, the President expressed concerns about the unsustainable wage bill accumulated by Kenya.

President Ruto emphasized the need to strike a balance between development projects and recurrent expenditure, as the ballooning wage bill was limiting the government's capacity to invest in crucial development initiatives. He revealed that the Treasury was currently allocating 46% of the country's revenue for monthly salary and wage payments, exceeding the targeted 35% threshold.

The President warned that such a high percentage was not sustainable and stressed the importance of reducing it to allocate more resources towards the country's development plan. He highlighted that the government's current spending on salaries and wages was disproportionately high compared to what was required.

Ruto defended the decision by stating that it aimed to ensure that the country's development goals were not starved of the necessary funds. He acknowledged the need to address the increasing wage bill in order to achieve a more balanced financial situation.

According to the Salaries and Remuneration Commission (SRC), the government allocated Ksh1 trillion for salaries in the 2022/2023 financial year. This represented 51% of the revenue collected in the country. If the SRC proceeds with its plan to increase civil servants' salaries by 8%, the percentage will rise even higher.

The President's announcement came shortly after he approved a salary increase for select civil servants while opposing a raise for high-ranking state officers. Ruto argued that he would only support a pay increase for state officers after the SRC presented international best practices to bridge the gap between the employees who serve the Kenyan people and the citizens themselves.

Due to the current economic circumstances, the President approved salary adjustments for other civil servants, effective immediately. However, he specified that the salaries of state officers, including himself, his deputy, cabinet secretaries, permanent secretaries, and members of parliament, would not be increased at this time. Their salary increments would be postponed until the SRC provided a framework based on international standards.