President William Ruto’s government gobbles close to KSh 1 trillion in wages and salaries per year. Salaries and Remuneration Commission (SRC) data indicates that the country’s wage bill increased by KSh 29 billion as of March 2024. How Kenya spends KSh 2t tax revenue per year Wages and salaries According to the Treasury Cabinet Secretary (CS) John Mbadi, the government spend KSh 80 billion per month to pay workers wages and salaries.
Mbadi said the wage bill in the Kenya Kwanza administration stands close to KSh 1 trillion per year, describing it as an expensive government. “We have a very expensive government. Today we are paying KSh 80 billion per month at the national government level for salaries. Per year, it is KSh 960 billion its going to a trillion,” said Mbadi while speaking on a local TV station on Wednesday, March 19. Loan repayment The CS added that out of the KSh 2.5 trillion collected by the Kenya Revenue Authority, KSh 1.1 trillion goes to loan repayment every year, leaving the state with ’empty coffers’ for development. “We are collecting KSh 2.5 trillion and we are spending on loan repayment about KSh 1.1 trillion. So, where do you get money for development? That is why sometimes our economy is sluggish,” he said. Will Kenya continue to borrow?
Mbadi explained the country is lagging in development due to a budget deficit, citing donors and grants as the only funds available for development “We are lucky that we have some development partners who pump in money in the form of grants, which help us to grow,” he noted. The CS affirmed the need for borrowing to manage Kenya’s deficit to a percentage of GDP below 5%. “On the budget deficit, the strategy is not to stop borrowing. No country in the world does not borrow, we all have to borrow, and all economies borrow. What you must do is to consistently manage your deficit as a percentage of GDP,” the CS explained. What’s the current budget deficit?
President Ruto signed the Supplementary Appropriation II Bill into law, increasing his administration’s expenditure. The bill increases recurrent expenditure, which includes daily operations like salaries by KSh 138.87 billion. The bill increased the fiscal deficit to KSh 875.54 billion or 5.02%, up from KSh 862.47 billion or 4.97% of GDP proposed in the Supplementary Budget II, which was tabled in Parliament in February 2025.
by Wycliffe Musalia
