Ruto's Bold Plan to Tackle Kenya's Rising Public Sector Wage Bill

17, Apr 2024 / 2 min read/ By Livenow Africa

Addressing attendees at the Third National Wage Bill Conference 2024 held at Bomas of Kenya, Ruto outlined the government's intention to generate an additional Ksh500 billion by digitizing services provided by the Kenya Revenue Authority (KRA). He expressed confidence that with intensified efforts, this figure could potentially reach Ksh1 trillion.

The public wage bill encompasses salaries, allowances, and other benefits disbursed to public sector employees for their services.

"We can raise an extra Ksh500 billion, if not an extra Ksh1 trillion, just by digitizing KRA and tapping into funds that are currently eluding us," Ruto asserted.

The president raised concerns about the burgeoning wage bill, attributing it to the substantial salaries paid to public sector workers. He stressed the need for measures to be implemented to unlock additional funds for the country's economic development.

"We have one million workers consuming Ksh1.1 trillion of the Ksh2.2 trillion we collect. The irony here is that when asked to contribute 1.5 percent for other Kenyans to secure employment, we protest," the head of state remarked.

Ruto underscored the importance of delivering on promises made by his administration, particularly regarding job creation for the nation's youth through the Bottom-Up Economic Transformation Agenda (BETA).

"We have a high number of support staff demanding employment opportunities. Public service cannot solely serve as a job market; we must be intentional about creating alternative avenues for employment," he emphasized. "We owe it to the millions of young people outside the formal education system to provide them with opportunities."

The president affirmed the government's commitment to reducing the current wage bill, which currently stands at 43 percent of national revenue, to 35 percent. This move, he argued, would unlock more resources and opportunities for taxpayers and stimulate economic growth.

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