Uhuru orders 20 pc pay cut for parastatal chiefs

President Uhuru Kenyatta has ordered a 20 per cent pay cut for all Parastatal heads.

He said his Government is instituting major reforms in the parastatal sector and chief executives who may not be willing to conform can resign.

“Parastatal chiefs will conform to what the Executive has done and we expect that they will take an equivalent 20 per cent pay cut. (READ: Uhuru and Ruto take pay cut: Who is next?)

“Failure to do so, I assure you there are many Kenyans willing to take up those jobs at a lower rate,” President Kenyatta said during the launch of the National Debate on the Public Wage Bill Sustainability at the Kenyatta International Conference Centre, Nairobi on Monday.

NSSF INVESTMENTS

The President also challenged the National Social Security Fund to change its investment policies and adopt new approaches which will benefit the contributors.

According to him, contributors to the Fund have been getting a raw deal and continue wallowing in poverty.

“Let us talk about investing in a more appropriate way that makes more meaning to our people today and to future generations,” he said.

Mr Kenyatta urged stakeholders to soberly debate the wage bill for the sake of current and future generations saying it is prudent to have a non-partisan approach to the issue.

"Let us not make this debate political. It is not a Jubilee debate but a national one.

SITTING ALLOWANCE

"This is not a Jubilee debate, this is a national debate and that is why we are here to join all Kenyans regardless of their political, social and religious beliefs," he said.

Deputy President William Ruto said Kenyans have to take bold steps and make necessary changes for the good of the country.

For the nation to achieve its economic agenda, all Kenyans have to make sacrifices and tough choices for the betterment of their future, he added.

Salaries and Remuneration boss Sarah Serem said she is willing to take a 10 per cent cut on her sitting allowance.

She congratulated the President and the Cabinet for voluntarily taking a pay cut noting that is leadership by example.

NEW CONSTITUTION

Cabinet Secretary Henry Rotich (National Treasury) said Kenya's wage bill is rising significantly and its sustainability is far above the average of other East African countries as well as those in Asia such as South Korea, Singapore and Malaysia.

He said for the country to achieve its middle level income status the Government will have to reduce and manage the public wage bill.

His Devolution and Planning counterpart Anne Waiguru cited various factors which have contributed to the rise of public wage bill such as the employment of 58, 700 public servants who include police, nurses and teachers between 2008 to 2012.

She further said implementation of the new constitution is a contributor to the rising wage bill because of the offices it created.