Uhuru and Ruto take pay cut: Who is next?

President Uhuru Kenyatta and Deputy President William Ruto will each take a 20 per cent pay cut, while Cabinet Secretaries will have their salaries reduced by 10 per cent in a bold and historic step to reduce the ballooning public wage bill.

The President will forego Sh248,000 every month, and Mr Ruto, Sh210,000.
 Principal secretaries have also been roped in, and just like their bosses in the Cabinet, will now earn 10 per cent less.
The reductions take effect immediately.

The government will also review and curtail “unnecessary foreign travel” to save the money for development projects. The government is also reviewing public expenditure to discontinue what  does not add value or improve the welfare of Kenyans.

President Kenyatta announced the pay cuts yesterday at the end of a retreat for top government officials and members of the parliamentary budget committee, as part of wide-ranging measures to  check public spending.

The landmark decision appears to have been meant to set the agenda for a national dialogue organised by the Salaries and Remuneration Commission, whose main aim will be to find means and ways to bring down the bill, which  now stands at Sh450 billion a year.

On Monday, the commission will hold a public debate on the government wage bill at the Kenyatta International Convention Centre.

Addressing a press conference at Mount Kenya Safari Club in Nanyuki, the President said he hoped all other sectors — the independent commissions, Parliament and other civil servants, including teachers — would join efforts to reduce the bill, which he said was a monster which had to be slain.

“Mindful of the rising public wage bill, my deputy and I will take a 20 per cent pay cut and our Cabinet and Principal Secretaries have accepted a 10 per cent pay cut, with immediate effect,” he said.

The President’s starting salary is Sh1,237,500, rising to Sh1,650,000 in the fifth year in office. The reductions will range from Sh247,500 a month to Sh330,000 in the final year.

The Deputy President’s starting salary is Sh1,051,875 a month, which will rise to Sh1,402,500 in his last year in office. This means he will take pay cut of Sh210,375, rising to a maximum of Sh280,500 in his fifth year.

Cabinet Secretaries

Cabinet Secretaries, whose salary starts at Sh792,000 rising to Sh1,056,000, will part with Sh79,200 in the first year, and Sh105,600 in the fifth year. 

Principal Secretaries will forego between Sh65,587 and Sh87,450 as their salary starts at Sh655,875 rising to Sh874,500 in the fifth year.

This means that they will save the country Sh4.87 million per month.
Asked whether he would implore Parliament to follow his example, the President said amid cheers from his Cabinet and senior civil servants  that the National Assembly is a part of Kenyan society and he would expect its members to work with others to reduce the burden on the exchequer.

Some experts welcomed the decision as a good symbolic gesture, but warned that the country needed more drastic measures to curb wastage.

“This is a good gesture,  but it will pale into insignificance if other measures are not effected. It means the leaders understand the scale of the wage bill problem,” said economist Gitau Githogo.

The view was supported by the Institute of Economic Affairs’ programme officer in charge of budget matters, Mr John Mutua. He said though message was positive,   it would not have a big impact.

President Kenyatta had said the wage burden was threatening development, as it gobbled up all the bulk of the resources,  leaving a mere Sh200 billion a year to finance projects.

“The wage bill, as it stands now, is a monster we need to deal once and for all. We have to bring the burden down as it is the greatest threat to the country’s development,” he said. 

National Assembly Majority Leader Aden Duale, who was present, said the Parliament would, “at its own time”  make its contribution to the reduction of the public wage bill.

“This was an Executive function and Parliament, being part of the Kenyan society will announce its contribution to how to reduce the wage bill,” Mr Duale added, before walking away from a group of  journalists who had sought his comment.

President Kenyatta said the government was committed to devolution and called on governors “to tone down your rhetoric and work with the national government to improve the lives of Kenyans.

The President and his team met the Budget Committee to impress on them on the priority areas for allocations.
Security will be the biggest beneficiary, with the President saying it had been unanimously agreed there could never be development without security.

Money would be allocated for vehicles and decent housing for the police department.

All the transport projects, including the standard gauge railway, were on course and would be funded, while all primary schools will be provided for in the next financial in preparation for the introduction of laptops.

On food security,  the President measures had been put in place to deal with shortages and cited mega projects like the Galana irrigation project.