The Kenyan government has agreed to involve certified human resource management practitioners in wage bill reviews, job evaluations, and staff establishment audits across government agencies. This move follows proposals by the Institute of Human Resource Management during consultations on the 2026 Budget Review and Outlook Paper. The objective is to strengthen professional human resource planning and promote wage bill sustainability.
The country's public sector wage bill has risen by about Sh40 billion, representing a 30 per cent increase over five years, from Sh988 billion in 2020-21. The Salaries and Remuneration Commission has repeatedly flagged the need to contain the growth of the wage bill and link remuneration to productivity and performance. The commission estimated public service wage payments at Sh1.17 trillion in 2023-24, up from Sh1.04 trillion in 2021-22.
The rising cost of the public payroll has put pressure on government finances, even as Treasury seeks to create room for development spending. The public wage bill currently stands at about 41 per cent of ordinary revenue, although this represents an improvement from 55 per cent in 2020. It remains above the statutory 35 per cent limit. Treasury's Budget Review and Outlook Paper puts the national government wage-to-revenue ratio at 24.6 per cent in 2025-26, against the 35 per cent ceiling prescribed under the PFM regulations.
Despite compliance by the national government, concerns are rife that the absolute cost of public salaries has affected resources available for development and other government priorities. National government recurrent expenditure reached Sh3.2853 trillion in 2025-26, although this was Sh115.4 billion below the target. County governments spent 44.2 per cent of their total revenue on employee compensation during the first nine months of 2025-26.
Some counties have recorded particularly high personnel costs, with Homa Bay and Taita Taveta spending as much as 63 per cent of their total revenue on employee compensation. The Institute of Human Resource Management proposed independent human resource audits and staff establishment reviews in affected counties. Treasury responded that necessary action would be taken in consultation with relevant stakeholders to address the high county wage bill and strengthen staff establishment controls.
Treasury is leveraging digital payroll controls to deal with the problem, including the deployment of a Human Resource Information System to help rid the payroll of ghost workers. The system will automate payroll processing and management of pension contributions, as well as statutory deductions. The government is implementing the system in phases, including its rollout to counties and integration with IFMIS.
Key points
- The Kenyan government's public sector wage bill has hit a record Sh1.287 trillion in the year to June 2026.
- The government will engage HR experts to review staffing levels and clean up payroll systems to contain the growing public sector wage bill.
- The public wage bill currently stands at about 41 per cent of ordinary revenue, above the statutory 35 per cent limit.
