The Salaries and Remuneration Commission (SRC) has raised concerns over Kenya’s growing public wage bill, warning that inefficiencies in the public sector are worsening fiscal pressure despite ongoing reforms.

Speaking at a local radio station on Tuesday, June 9, 2026, the SRC Chief Executive Officer, Ali Abdullahi, said the country is currently spending about Ksh1 trillion annually on wages, describing the figure as a reflection of deeper structural challenges within government.

According to Abdullahi, Kenya’s wage concerns go beyond the size of the payroll, arguing that the core issue is productivity across public institutions.

“We are paying about KSh 1 trillion annually in wages. We do not have a wage bill problem; we have a productivity problem in Kenya. We only need to improve our revenue from 3.9% to 5%,” Abdullahi said.

Duplication of functions between Governments

He pointed to duplication of functions in both national and county governments, high salary commitments, and poorly regulated Collective Bargaining Agreements (CBAs) as key drivers of the rising wage burden, particularly at the county level.

“The wage bill problem is serious at the county level, and we are concerned. There are duplicated functions, high salaries, and uncontrolled CBAs, all of which have contributed to the high wage bill,” he added.

Abdullahi further argued that improving revenue collection would play a critical role in easing fiscal pressure. He noted that Kenya’s revenue performance remains relatively low, suggesting that raising it from about 3.9% to 5% could significantly improve the government’s ability to fund both recurrent and development expenditure.

SRC’s commitment

He also highlighted ongoing SRC reforms aimed at curbing unnecessary expenditure, revealing that a survey conducted by the commission identified about 480 different types of allowances across the public sector.

“Some of them were duplicative, and by scrapping some of these allowances, we have helped save Kenyans money,” Abdullahi said.

He noted that the SRC continues to rationalise allowances and streamline pay structures as part of broader wage bill control measures.

The SRC has, in recent years, consistently warned that unchecked wage growth risks crowding out development spending, urging governments at both levels to streamline operations, eliminate redundant roles, and enforce stricter controls on compensation frameworks.