Uhuru’s new Cabinet adds more than Sh1 billion burden to tax payers

By Otiato Guguyu

President Uhuru Kenyatta President Uhuru Kenyatta’s expanded cabinet will cost taxpayers almost half a billion each year in salaries alone. The 22 Cabinet Secretaries (CSs) including a part-time one and the new 21 Chief Administrative Secretaries will cost Sh486.4 million each year if they earn the same pay.

ALSO READ: Uhuru nominates Rashid Mohammed as the new Sports and Heritage Cabinet Secretary replacing Hassan Wario The State functionaries are also expected part with Sh285.78 million in gratuities, pensions and insurance which is 60 per cent of their gross pay - bringing the total cost to over Sh772 million a year.

The CSs earn fixed salaries of Sh924,000 down from Sh1.056 million while Principal Secretaries (PSs) earn Sh765,000 from Sh874,500 as per the new pay structure the Salaries and Remuneration Commission (SRC) announced on July 10. President Kenyatta has appointed 38 PSs, who will be paid an estimated Sh348.8 million a year with Sh209.3 million in gratuities. This brings the total cost of running the Executive to Sh1.33 billion. It comes at a time when Treasury is trying to cut down spending after warning that recurrent expenditure demands could affect the economy.

“Recurrent expenditure is a risk and we are having pressures on the wage bill from unions and if you allow me Chairman Budget from parliament,” Treasury PS Dr Kamau Thugge said during the presentation of the 2018 draft budget. He made the remarks after MPs overturned SRC cap on mileage which would pave way for the 416 MPs to pocket Sh668,000 extra in allowances and salary at the end of this month. According to the 2018 Budget Policy Statement by the Treasury, the public sector wage bill has increased by nearly Sh100 billion over the last three years despite the Government’s efforts to tame recurrent expenditure.

Treasury predicts the wage bill, which stood at Sh307 billion in 2015 and has since risen to Sh401 billion, will hit Sh444 billion next year. Treasury data shows Kenya will pay Sh304 billion as interest on loans and Sh76 billion as pensions next year leaving less for development.