Analysts advise State on wage bill

MPs Gideon Ochanda (Bondo) and Opiyo Wandai (Ugunja) address the Press at Parliament Buildings. They accused the Government of mischief on their way of tackling the wage bill issue. [PHOTOS: BONIFACE OKENDO/STANDARD]

By JAMES MBAKA

Kenya: Mixed reactions have greeted the ambitious austerity measures announced by President Uhuru Kenyatta with stakeholders and experts, calling for policy backing to ensure smooth implementation.

Some analysts argue that while senior State officials may not defy the order after a retreat in Nanyuki, issues of corruption and a bloated public service should be addressed to tame the spiraling wage bill.

 Analyst Barrack Muluka says there is need for the Government to assess the bloated workforce and lay off redundant workers.

“Whether you call it downsizing, right sizing or retrenchment, the issue of a bloated public service must be addressed. It is done all over the world. The Government should pay what it can afford,” he said.

He proposed that the Government assesses devolved units to identify gaps and devise ways of dealing with the runaway wage bill.

“We must look at devolution and see if we have done the right thing for ourselves. Where necessary some people should be allowed to exit,” he said.

Muluka concurred with President Kenyatta that the runaway public wage bill has remained unaddressed for many years, saying the Government should reign in on corrupt state officers.

“Corruption has custodians in the public sector with cahoots in the private sector. The Government must make sure its workforce achieves some deliverables to measure what they are doing,” he said.

While emphasising that the wage bill is unsustainable, President Kenyatta on Monday dared those unwilling to have their salaries reduced to seek legal redress.

“Those who resist can go to court and even if they win, it is cheaper to pay them off and get other people. So they should not think they are going to take us back,” the President affirmed.

While policy experts and stakeholders welcomed the bold move taken by the President and his Deputy, some say it needs proper structures to succeed. Institute of Economic Affairs CEO Kwame Owino says if well implemented, the move will demonstrate the State’s commitment to save cash for development.

“The President is their employer. As he says, there is need to send that symbolic gesture that he is serious about managing the wage bill. But I think it would be good to have it written in a policy statement,” said Owino.

Presidential directive

Some parastatal chiefs such as KenGen Managing Director Albert Mugo, who are affected by the presidential directive, said although the move was positive, there was need for further consultations.

“The salaries of the public sector need to be rationalised. I guess if it starts with the parastatal chiefs, it is going to affect the other staff. So there is quite a lot of work that still needs to be done,” said Mugo.

Education Cabinet Secretary Jacob Kaimenyi, who is one of those who must take a 10 per cent pay cut, said parastatals heads have no choice but to comply.

“It is a brilliant idea. If the parastatal bosses are serious, I think it is only fair that they take the example of their leaders; the President, his Deputy, Cabinet Secretaries and the Principal Secretaries,” said Kaimenyi.

He called for more debate and the recommendations made public.