The Salaries and Remuneration Commission (SRC) is seeking approval to spend Ksh80 million to host a National Productivity and Performance Conference, as concerns grow over the rising public wage bill.

The proposal was presented on Friday, February 13, 2026, during the 29th Intergovernmental Budget and Economic Council (IBEC) meeting held at the official residence of the Deputy President Kithure Kindiki, in Karen, Nairobi.

At the meeting, SRC shared its latest findings on wage bill trends and labour productivity in both national and county governments.

How it will be spent

According to SRC, the Ksh65 million will be used to organise the conference. The money will cover venue hire, hospitality, logistics, delegate services, branding, communication, preparatory meetings and retreats, as well as programme delivery through a digital platform, documentation and media coverage.

Another Ksh15 million is set aside for the National Productivity and Performance Awards. This amount will cater for planning meetings and procurement of awards, bringing the total proposed budget to Ksh80 million.

SRC Chairperson Sammy Chepkwony said the event will help connect productivity with revenue growth and long-term wage bill control.

“The conference will present a strategic platform for linking public service productivity with revenue generation and wage bill sustainability and propose national strategies to support the establishment of a National Productivity Index, strengthen performance contracting, and align remuneration policies with institutional outcomes,” he explained.

The conference is planned for May 2026 and is expected to bring together about 4,000 participants from national and county governments, the private sector, civil society, academia, professional bodies and development partners.

“It will foster engagements cognizant of the fact that wage bill sustainability may not be achieved solely through expenditure cuts, but by investing in a public service that delivers higher returns through higher revenue collection, greater responsiveness and effective service delivery at both National and County levels,” Chepkwony said.

Wage bill above target

SRC’s request comes at a time when the wage bill remains under pressure. The commission said the public wage bill stood at 43.3 per cent of ordinary revenue in the 2023/2024 financial year.

It is projected at 40.4 per cent in 2024/2025, still above the 35 per cent target set for 2028.

The commission warned that unless labour productivity improves, wage bill growth will continue to outpace revenue collection.

SRC blamed the slow progress on structural challenges such as the increasing number of public servants, duplicated roles across institutions, weak payroll controls and wage demands that are not tied to productivity levels.

It also noted that labour productivity in the private sector is more than three times higher than in the public sector, with the gap continuing to widen.

As part of its recommendations, SRC asked IBEC to support labour productivity improvement as a key strategy to manage the wage bill. It also sought approval to request the Ksh80 million from the National Treasury to hold the conference.

In addition, the commission called for faster staff rationalisation, removal of duplicated functions and full migration of government payrolls to a unified human resource information system.