Ex-CS Moses Kuria speaks on wage bill reduction, reveals big challenge in tax collection
Outgoing Cabinet Secretary for Public Service, Performance, and Delivery Management Moses Kuria has called for a significant reduction in the public wage bill.
Kuria insisted on the need to decrease it from the current 46% of tax revenues to 35% within the next three years.
Moses Kuria hands over
Speaking during the handover to his successor, Justin Muturi, Kuria highlighted the urgency of this financial adjustment to ensure that a greater portion of tax revenues is allocated to development and other critical areas rather than solely to salaries.
“Productivity remains a crucial issue. In April, during the third Wage Bill Conference at Bomas of Kenya, we identified that our wage bill is at 46% of tax collection, and our goal is to reduce it to 35% over the next three years,” Kuria stated.
He noted that ten commitments were made publicly at the conference, and he hopes that these will be actively pursued by the governors.
“These commitments are part of the handover papers. We made them publicly, and I trust that they will receive the necessary attention,” he added.
Kuria stressed that managing the wage bill is not only an economic concern but also a moral one.
“Kenyans spend three-quarters of their working day generating taxes to fund public service, while only a quarter is available for development and other important issues. This is a significant issue that must be addressed.”
He cautioned that while the implementation of these measures may not be popular, it is essential.
Moses Kuria’s conclusion
“It is a challenging task but it is necessary for the country’s economic health,” Kuria concluded.
Kuria exits having served in the role from October 2023; following a reshuffle, he was moved to the public service portfolio and was replaced as trade minister by Rebecca Miano.