State spends Sh960 billion annually on salaries alone – CS Mbadi
In addition to the high wage bill, the country is also managing a significant debt, with annual loan repayments amounting to Sh1.1 trillion.
National Treasury Cabinet Secretary, John Mbadi, has raised concerns about the growing financial burden of the country's government, describing it as "very expensive."
Speaking on Citizen TV on Wednesday, Mbadi emphasized that the national government’s salaries alone account for a substantial portion of the budget, totalling Sh960 billion annually.
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This amount is expected to surpass the Sh1 trillion mark in the near future.
"The government is costly. Today, we are paying Sh80 billion per month at the national government level for salaries. Per year it is Sh960 billion, and it’s going to a trillion shillings. We are collecting Sh2.5 trillion and spending about Sh1.1 trillion on loan repayment, so where do you get money for development? That is why sometimes our economy is sluggish," Mbadi said.
In addition to the high wage bill, the country is also managing a significant debt, with annual loan repayments amounting to Sh1.1 trillion.
This leaves limited room for development spending, which is further strained by the government's heavy financial obligations.
Despite these challenges, CS Mbadi pointed out that Kenya’s development has been sustained by grants from international partners, which he described as a form of "luck."
“We are just lucky that somehow we have development partners who pump in some money, some in the form of grants, and they help us to grow," he said.
Public discourse
The Treasury boss also called for a national conversation on the current form of government, questioning whether it aligns with the country's best interests.
He recalled his time as a member of the Budget and Appropriations Committee, during which he requested a cost analysis of the government.
Former Auditor General Edward Ouko had led a team to compile a detailed report, which Mbadi suggested should be revisited.
“There must be a conversation. I've been a member of the Budget and Appropriations Committee for 15 years. How I wish we could pick that report again and have a conversation on whether we need the kind of government we have today,” Mbadi said.
The CS also critiqued the country’s devolved government structure, which consists of 47 counties, each with its own full-fledged government, including governors, deputy governors, ministers, and county assemblies.
He pointed out the financial strain this system imposes, especially with the increasing wage bill.
"Fourty-seven counties, each with full-fledged government, a governor who is a mini-president with a deputy running mate, and struggling to find work to do, and then you have ministers, all of them going for 10, which is the maximum. We have Chief Officers, more than 10, and then we have county assemblies,” Mbadi explained.
The increasing number of devolved units, he said, has become unsustainable and is contributing to the country’s financial struggles.
The CS suggested that the government might need to reconsider the current structure in light of the economic challenges it faces.
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