Alarm sounded over public wage bill

PHOTO | FILE Striking teachers demonstrate outside Knut offices in Mombasa on July 1, 2013. The government gave them Sh16 billion, increasing the public wage bill that now stands at over 458 billion.

What you need to know:

  • Retention of civil servants who were rendered jobless by Constitution spells doom for economy

The country’s public service wage bill may soon become unsustainable as career civil servants rendered redundant by the new Constitution and administration order remain on the government payroll while many of their functions have been taken over by new appointees.

Those in this category include former Permanent Secretaries who were not reappointed, Provincial Commissioners, provincial police chiefs and former local authority clerks, whose fate is now at the mercy of governors. (EDITORIAL: No point in paying staff who don’t work)

Former PCs who were recalled by President Kenyatta are still being retained as regional commissioners but essentially have nothing to do.

The Constitution also collapsed the 44 grand coalition ministries into 18— creating another deployment headache for the government.

Just last week, teachers called off their three-week strike after accepting the Sh16 billion government offer for commuter allowances that will be paid to them in phases, further bulging the government wage bill.

Deputy President William Ruto, writing in the Sunday Nation, says the current public sector wage bill is Sh458.7 billion but is projected to reach Sh548.8 billion if suggested recommendations as well as other sub-sectoral demands are incorporated.

“As a percentage of the GDP, the wage bill stands at 12.2 per cent, of which 7.8 per cent represents the civil service wage, projected to rise to 14.6 per cent, with the civil service taking 9.3 per cent,” Mr Ruto said.

This, the Deputy President said, would force the government to borrow beyond its means to meet its demands.

According to Mr Ruto, the high wage bill could undermine economic growth and job creation by causing high aggregate demand, which results in inflation. It could also make imports more expensive while lowering exports and generally reduce Kenya’s competitiveness in the international market.

Gem MP Jakoyo Midiwo said the government had made the situation worse by holding on to county commissioners who are not provided for in the Constitution.

“There are several ways of managing the public wage bill. The wrong way, however, is to enhance it with the unconstitutional offices like those of the county commissioners with their retinue of support staff and expansive offices,” he said.

He said there were many departments which are duplicating each other’s work. Correcting this, he said, requires a national debate to amend the Constitution to reduce the number of counties and county wards.

“For instance, look at the positions of the Cabinet secretaries and the principal secretaries. Basically, one of them becomes jobless because the Cabinet secretary has now become the accounting officer. You will also recall that under the previous dispensation, ministers used to have MPs salary and a ministerial allowance but now the Cabinet secretaries are on salaries,” said Mr Midiwo.

Among the most notable areas where positions created by the Constitution conflict with those in the old order are in the counties where holders of posts such as town clerk remain in office. Many public servants who were carrying out duties now handled by officials under the governor also remain in office although in practice they have nothing to do.

The national government has already indicated that former PSs who failed to retain their jobs in the new administration are being considered for top public jobs. At least 15 former PSs will be considered to head parastatals and other government institutions in a plan to retain key personalities with wide sectoral experience.

Others might be taken in as advisors to the President on different matters of social and economic interest. Secretary to the Cabinet Francis Kimemia in an interview said some of the former accounting officers would be absorbed in government parastatals while others had opted to go into private practice. “The former PSs aren’t criminals; they were not short-listed to serve in the same capacity in the new administration,” he said.

The State Corporations Act gives the President powers to appoint chairmen of parastatals while Cabinet secretaries and boards are responsible for the appointment of CEOs. However, Mr Kimemia said the government was negotiating on how they would be remunerated.

In essence, civil servants serve until they have attained retirement age meaning the government can only redeploy them.

Some former PSs who applied for the new principal secretary positions but were not appointed yet they are career civil servants have opted to quietly exit the scene.

President Kenyatta nominated 26 persons to serve as principal secretaries from a shortlist of 66 applicants from the Public Service Commission (PSC), shying away from majority of those who served in the grand coalition.

Only six former PSs— Mr Kimemia, Mutea Iringo, Karanja Kibicho, Michael Kamau, Lawrence Lenayapa, and Mr Micheni Ntiba— were appointed to either PS or Cabinet secretary positions under the new administration.

Some of those who were left out were Dr Bitange Ndemo (Information and Communication), Dr Abdulrazak A. Ali, Tirop Kosgey (Housing), David Stower (Water and Irrigation), Dr Jacob ole Miaron (Livestock Development) and Dr Gideon Mulyungi (Public Works).

Some of the PSs who still had a number of years before attaining the official retirement age told the Sunday Nation that they had opted for an early retirement while others have gone back to their previous employment.

“I have had an early retirement from public service with effect from June 30, 2013. I am resting at home in Busia County,” Mr Stower, told the Sunday Nation.

Others are waiting to hear from the Public Service Commission on what the future holds for them. They include Thuita Mwangi (Foreign Affairs), Andrew Mondoh (Special Programmes), Mark Bor (Public Health), Nancy Kirui (Defence), Leah Adda Gwiyo (Gender), Chiboli Shakaba (EAC Affairs), Mary Ngari (Medical Services) and James Waweru (Sports).

“We are waiting for the government to communicate to us,” Ms Ngari, told Business Daily. “I’m taking a long sabbatical leave and then retire from Civil Service. I want to study for my PhD in psychology, focusing on drugs and substance abuse, which is a big challenge in Kenya.”

Mr Mwangi, meanwhile, said he was resting. “Please correct the impression being given that I missed being appointed. Note that I did not apply to be a principal secretary or for any other position,” he said.

Non-career civil servants who had been hired on contract have meanwhile gone back to their former jobs. Prof Crispus Kiamba, Dr Ndemo and Dr Chweya are said they have gone back to teach at the university.

“I am doing research in social enterprise, basically on how to create jobs for those who are disadvantaged,” said Dr Ndemo, who also revealed that he has rejected job offers from global organisations’ to stay at home.

However, those who had attained the mandatory retirement age of 60 said they handed over and went home once their successors took over. Former local government PS Prof Karega Mutahi, his energy and Finance counterparts Patrick Nyoike and Joseph Kinyua said they followed President Kibaki into retirement.

In the police force, former provincial chiefs who were replaced with county commanders are still in the office at the provincial headquarters a month after their offices were abolished. Inspector-General of Police David had on June 14 named the 47 county commanders and directed the PPOs hand over immediately and to go back to Vigilance House in Nairobi for deployment.

Also still in the office are the Provincial Criminal Investigating Officers (PCIOs) who are yet to be deployed in the new police structure.

A senior police officer at the Rift Valley Provincial headquarters said that the newly posted County Commanders in the province were yet to take charge of their counties and were still taking orders from the PPOs.

Report by Walter Menya, Edith Fortunate and Francis Mureithi.