Only six counties in Kenya are currently complying with the legally prescribed wage-bill-to-revenue ratio, set at a maximum of 35 percent by the Public Finance Management Act of 2012. This is according to the latest wage bill bulletin from the Salaries and Remuneration Commission (SRC), covering the second quarter of the 2024/25 financial year (October–December 2024).
The compliant counties Kilifi, Tana River, Busia, Narok, Nakuru, and Kwale have managed to keep their spending on personnel emoluments within the statutory limits. Kilifi leads the way with a wage bill ratio of just 26.2 percent, followed by Tana River at 29.4 percent, Busia at 31.0 percent, Narok at 32.0 percent, and Nakuru at 33.0 percent.
In stark contrast, Nairobi County is the biggest violator, recording a wage-bill-to-revenue ratio of 55.4 percent. This means more than half of its revenue is being spent on salaries, leaving little room for development and essential public services. Other major non-compliant counties include Machakos and Nyamira, both at 55.2 percent, Taita Taveta (53.2%), Tharaka Nithi (52.3%), and Laikipia (52.2%).
At the national level, however, the picture is more positive. The SRC reports that the national government’s personnel emoluments spending remains within the legal threshold. According to the Office of the Controller of Budget, the national government is projected to spend Ksh.212.53 billion on personal emoluments in Q2 of the 2024/25 fiscal year, up from Ksh.170.29 billion in the same period of the previous year. Despite the increase in absolute terms, the ratio to revenue is projected to drop from 31.7 percent to 25.7 percent.
Public service wage payments have shown a steady rise, increasing by 6.36 percent from Ksh.1.04 trillion in 2021/22 to Ksh.1.1 trillion in 2022/23, and are projected to reach Ksh.1.17 trillion in 2023/24.
The Teacher Service Commission (TSC) remains the largest wage bill contributor at 33.8 percent, followed by the national government at 27.12 percent. Conversely, salaries and wages under Consolidated Fund Services (CFS) and State corporations account for the least, at 0.31 percent and 4.7 percent respectively.
