Tuesday, November 12, 2013

Budget Controller raises alarm over high wage bill

Controller of  Budget Agnes Odhiambo. Photo/FILE

Controller of Budget Agnes Odhiambo. Photo/FILE 
By EDWIN MUTAI
In Summary
  • Agnes Odhiambo says more than 41 per cent or Sh252 billion of recurrent expenditure (Sh611 billion) at the national level goes to paying salaries while 67 per cent or Sh111 billion of recurrent expenditure (Sh166 billion) in counties went to salaries.
  • Nairobi, Homa Bay and Baringo counties topped the list of highest spenders on personnel emoluments while Siaya, Mandera and Isiolo were the least spenders.
  • The Budget and Appropriations Committee resolved to develop guidelines for budget ceilings in ministries and departments before the next budget cycle.


The Controller of Budget wants Parliament to urgently develop a policy on public sector wages in order to stop personnel expenses eating into productive investments at the county and national level.

Agnes Odhiambo says more than 41 per cent or Sh252 billion of recurrent expenditure (Sh611 billion) at the national level goes to paying salaries while 67 per cent or Sh111 billion of recurrent expenditure (Sh166 billion) in counties went to salaries.

“The amount of money going to meet salaries of staff for both county and national government is significant and must be reviewed if development is to be realised,” Ms Odhiambo said.

The Treasury allocated counties Sh210 billion for meeting development and recurrent budget for this financial year, out of which Sh10.72 billion went to paying salaries in the first quarter.
The Budget and Appropriations Committee chaired by Mutava Musyimi said the high cost of personnel was not sustainable.
Nairobi, Homa Bay and Baringo counties topped the list of highest spenders on personnel emoluments while Siaya, Mandera and Isiolo were the least spenders.

Nairobi County has allocated Sh10.4 billion or 59.2 per cent out of its annual recurrent budget of Sh17.6 billion) billion for salaries while Siaya, with an annual recurrent expenditure Sh2.8 billion, will spend Sh538.5 million (9.2 per cent) to meet staff salaries.

MPs questioned the allocations of recurrent budgets for the National Intelligence Service, Ethics and Anti-Corruption Commission and the Commission for the Implementation of the Constitution, which have no figures on personnel emoluments.

The committee also questioned the huge percentage of allocations to salaries in the recurrent vote for the ministries of Interior and Coordination of National Government (Sh756.2 million or 60 per cent), Ministry of Mining (Sh291.8 million), Parliamentary Service Commission (Sh9.6 billion), Judicial Service Commission (Sh123 million), IEBC (Sh2.1 billion) and Kenya National Commission on Human Rights Sh100 million.

Other ministries or departments whose percentage of personnel emoluments to recurrent budgets for the current financial year exceeds 50 per cent are the Ministry of Foreign Affairs, East African, Tourism and Commerce, the Witness Protection Agency, Public Service Commission, Salaries and Remuneration Commission, TSC (99.5 per cent), Auditor General, Controller of Budget, Commission on Administrative Justice and National Gender and Equality Commission.
The committee resolved to develop guidelines for budget ceilings in ministries and departments before the next budget cycle.

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