Former Kenya International Conference Centre (KICC) chair Irungu Nyakera has sounded the alarm over Kenya’s ballooning public sector wage bill following a Sunday Nation report highlighting looming job cuts.
The report noted that a High Court ruling on surging payments to government employees could trigger reforms aimed at trimming roles and perks, with the Salaries and Remuneration Commission expected to submit regular progress reports to the court.
Nyakera pointed out that Kenya spends over 40 percent of its revenue on salaries for roughly one million public servants—a figure he says is unsustainably high compared to other economies.
“Globally, many governments operate on much leaner structures such as Singapore (9%), United States (14%), Germany (12%), Canada (15%), Australia (13%), Japan (11%), South Korea (10%), Switzerland (9%), Rwanda (12%) and Botswana (18%),” he noted.
He warned that the oversized wage bill, often exacerbated by waste and corruption, crowds out private sector growth and contributes directly to business closures and job losses.
“Kenya must now cap the wage bill, cut waste, and redirect resources to the private sector by paying suppliers on time, lowering the cost of credit for SMEs, reducing the cost of doing business, and dismantling procurement cartels,” Nyakera said.
The former KICC chair emphasized that economic growth depends on private enterprises creating jobs rather than an overextended public service.
He urged Kenyans to reflect on the country’s leadership choices.
“As we go to church today, let’s pray for our country, that we choose integrity, work, and leadership that protects jobs and businesses for all,” he added.
Analysts say the government may be forced to pursue radical reforms to reduce expenditure on salaries, with potential implications for employment in both the public and private sectors.
With the wage bill consuming a large portion of national revenue, the coming months could see tough decisions aimed at balancing fiscal responsibility and job preservation.
This coverage comes amid growing public debate on how Kenya can achieve sustainable economic growth while maintaining a large workforce.