Treasury CS Mbadi proposes reduction of counties to achieve financial sustainability
The CS suggested that the country may have to either go back to the eight provinces in the previous Constitution or have a maximum of 14 regions to achieve long-term financial sustainability.
National Treasury Cabinet Secretary John Mbadi has decried the ballooning wage bill across Kenya's 47 counties, suggesting that the country may have to either go back to the eight provinces in the previous Constitution or have a maximum of 14 regions to achieve long-term financial sustainability.
Speaking at Citizen TV's JKLive on Wednesday night, Mbadi argued that the current devolved system has become unsustainable, with county governments struggling to manage their finances while allocating a significant portion of their budgets to salaries rather than development projects.
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"Our counties are filled with all kinds of staff. From directors of fishermen, boda bodas, music, and culture to deputies earning big money. We have so many people. This is despite the fact that 47 counties are just too much for a country the size of Kenya to handle," he said.
The Treasury boss then pointed out that the financial burden of maintaining 47 fully-fledged county governments was straining the national economy.
According to Mbadi, governors have structured their administrations in a way that mirrors the national government, complete with an extensive bureaucracy, leading to wastage of public funds.
He further explained that when devolution was introduced, the primary goal was to ensure resources reached the grassroots, but instead, it created an inefficient and bloated system.
Mbadi revealed that the government spends an estimated Sh80 billion per month on salaries at the national level, translating to nearly Sh1 trillion annually. With loan repayments standing at Sh.1.1 trillion per year, he questioned how much would remain for development projects across the country.
"We have a very expensive government. Today we are paying Sh80 billion per month at the national government level for salaries. Per year it is Sh960 billion. Furthermore, we are collecting Sh2.5 trillion whilst spending Sh1.1 trillion on loan repayment. Where then, do we get money for development?" he posed.
As a remedy, the CS suggested that a return to the previous provincial structure or a scaled-down version of devolution with a maximum of 14 regions be implemented.
He specifically pointed out Rift Valley and Eastern Province, which were expansive under the old system suggesting their division into two or three manageable units.
The CS also highlighted the issue of over-representation in county assemblies, citing the high number of elected and nominated MCAs as an additional financial burden.
"In the old days when we first had the Majimbo Constitution we had fewer regional governments and assemblies compared to today. Kenyans should get into a conversation about whether this is the type of devolution that we need. In my view, we needed resources to be devolved, not too much government," Mbadi said.
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