County jobs to go in wage bill deal
Deputy President William Ruto with Council of Governors chairman Isaac Ruto (left) at the DP’s Karen office in Nairobi on February 11, 2015. The deputy president has in recent weeks found himself fighting off numerous challenges that analysts believe could chip away at his power base. PHOTO | JEFF ANGOTE |
What you need to know:
- Authorities to change regulations to ensure salaries do not take more than 35 per cent of counties’ funds.
- New measures would also aid in eradicating ghost workers.
Thousands of workers in the 47 counties are set to lose their jobs as county governments act to contain their huge wage bills.
This follows an agreement between governors, the national government and the Commission for Revenue Allocation to change the public finance management regulations to ensure that no more than 35 per cent of funds allocated to county governments is spent on salaries.
Deputy President William Ruto on Wednesday announced that governors will hold a meeting with Devolution Cabinet Secretary Ann Waiguru in the next five days to discuss ways of eliminating ghost workers gobbling up much of the monies allocated to county governments.
Mr Ruto spoke after chairing the Intergovernmental Budget and Economic Council meeting in Nairobi.
Commission for Revenue Allocation chairman Micah Cheserem said that to ensure prudent use of public funds, a proposal has been included in the draft public finance management regulations that will ensure the total wage bill for the county governments does not exceed 35 per cent of the county’s total allocation.
The Nation has learnt that a committee formed last year to eliminate ghost workers at national and county governments was finalising its report that will be handed over to Ms Waiguru.
BUDGETARY ALLOCATIONS
The elimination of ghost workers comes in the wake of a World Bank report that ranked counties in terms of their budgetary allocations to development.
The report which has been widely criticised by governors listed counties such as Mombasa, Kisumu, Nakuru and Nairobi as among those that had allocated as little as 1 per cent of funds to development projects, with the rest swallowed by recurrent expenditure.
Only Wajir, Turkana, Bomet, Machakos, Murang’a, Homa Bay, West Pokot, Trans Nzoia, Kisii and Nyamira, in that order, were listed as having spent more than 30 per cent of their development funds.
On average, most counties spent 21 per cent on development, 46 per cent on salaries and 30 per cent on administration.
According to this year’s Bill on county allocation prepared by the National Treasury, Nairobi and Turkana will receive the largest share of the money allocated to counties in the 2015/2016 financial year.
Nairobi will receive Sh12.7 billion while Turkana will get Sh10.2 billion. Other counties which will receive large amounts include Mandera (Sh8.7 billion), Kakamega (Sh8.6 billion), Bungoma (Sh8.2 billion), Nakuru (Sh7.9 billion) and Kiambu (Sh7.2 billion).
Counties which will receive the least amounts include Lamu (Sh2 billion), Isiolo (Sh2.9 billion), Tharaka Nithi (Sh3 billion), Elgeyo Marakwet (Sh3.1 billion), Taita (Sh3.2 billion) and Laikipia (Sh3.3 billion).
