Kenyan county governments have seen a significant increase in their wage bills, with a total surge of Sh45.85 billion since the current governors assumed office in August 2022. According to an analysis of county expenditure reports by Controller of Budget Margaret Nyakang'o, several counties have recorded substantial increases in personnel expenditure. The rising wage bill is eating into resources that should otherwise be available for development and service delivery.
Nairobi Governor Johnson Sakaja's administration has led the pack, with the county wage bill rising by Sh3.02 billion in four years, from Sh14.79 billion to Sh17.81 billion by June 30, 2026. Other counties, including Bungoma, Mombasa, and Homa Bay, have also recorded significant increases in their wage bills. Bungoma Governor Kenneth Lusaka's wage bill has increased by Sh2.32 billion, rising from Sh5.20 billion to Sh7.53 billion by June 30, 2026.
The analysis shows that several other counties have recorded increases of more than Sh1 billion in their wage bills during the four years. Nakuru's wage bill has risen by Sh1.70 billion since Governor Susan Kihika took charge, while Uasin Gishu, under Governor Jonathan Bii, has recorded an increase of Sh1.63 billion. Narok Governor Patrick Ntutu's county has seen its wage bill rise by Sh1.90 billion, while Marsabit, headed by Governor Mohamud Ali, recorded an increase of Sh1.48 billion.
Controller of Budget Margaret Nyakang'o has advised devolved units to implement payroll containment measures and bring their wage bills within the 35 per cent threshold provided for under Section 107(2) of the Public Finance Management Act by June 30, 2028. The deadline was agreed upon during the Wage Bill and Productivity Conference held in April 2024. Nyakang'o has also warned that the growing wage bill is eating into resources that should otherwise be available for development and service delivery.
Community Initiative Action Group-Kenya CEO Chris Owala has attributed the increase in wage bills to governors often increasing their workforce after assuming office, sometimes to satisfy political interests. A report of the Senate Public Accounts Committee on Auditor General Nancy Gathungu's report on county executives for the 2023-24 financial year also raised concern over the growing wage burden in counties. The report found 36 county executives exceeded the 35 per cent threshold.
The wage pressure cuts across the country and has been cited as a ticking time-bomb if not contained, with the cost having hit Sh1.3 trillion as of June this year. In several counties, including Kericho, Kitui, and Tharaka Nithi, significant increases in wage bills have been recorded. Other counties, including Migori, Samburu, and Taita Taveta, have also seen substantial increases in their wage bills.
The rising personnel costs come as counties face mounting demands for development and service delivery amid constrained revenues. Treasury recently indicated it would engage professional human resource managers to help advise on how the country's wage bill can be reduced to sustainable levels. Only Machakos recorded a reduction in the period under review, with its wage bill dropping by Sh32 million.
Key points
- The surge in wage bills has put pressure on county governments to balance personnel costs with spending on development programs.
- Controller of Budget Margaret Nyakang'o has advised counties to implement payroll containment measures to bring their wage bills within the 35 per cent threshold.
- The growing wage bill is eating into resources that should otherwise be available for development and service delivery.
