National Treasury Cabinet Secretary John Mbadi has raised concerns over Kenya’s increasingly costly government, warning that the high wage bill and debt repayments are straining the country’s economy. Speaking on Citizen TV, Mbadi highlighted that salaries at the national government level alone amount to Sh960 billion annually, a figure expected to surpass Sh1 trillion soon.
In addition to the wage bill, Kenya is also spending approximately Sh1.1 trillion annually on servicing loans. With the country’s yearly revenue collection standing at around Sh2.5 trillion, these expenditures leave minimal funds for development, leading to sluggish economic growth.
“We have a very expensive government. Today, we are paying Sh80 billion per month at the national government level for salaries. Per year, it is Sh960 billion, and soon it will hit a trillion shillings. We are collecting Sh2.5 trillion, and spending Sh1.1 trillion on loan repayment. So, where do we get money for development? That is why sometimes our economy is sluggish,” Mbadi explained.
He credited development partners for keeping Kenya’s infrastructure and social projects afloat through grants, but he emphasized that relying on external aid is not a sustainable solution.
Mbadi also called for a national conversation on whether the current form of government, established under the 2010 Constitution, is viable. Kenya’s governance structure consists of a national government and 47 devolved county governments, each with its own executive and legislative arms. According to Mbadi, this system has become financially unsustainable due to the ballooning wage bill at the county level.
The Treasury CS suggested that Kenya should reconsider the eight-province system that existed before devolution, arguing that it would be more cost-effective.
“Each of the 47 counties has a full-fledged government with a governor who is like a mini president, a deputy governor, and several county executives. Most of them struggle to find meaningful work to do. We also have county assemblies with high expenditures. This structure is financially unsustainable,” he said.
Mbadi urged Parliament to revisit a past report by former Auditor General Edward Ouko that analyzed the cost of Kenya’s government. He believes such a discussion is necessary to determine whether the country can afford its current governance model or if structural changes are required to ease the financial burden on taxpayers.Jo
