Government is not lying, and we mean every word we tell Kenyans

The provocative and inaccurate comments by David Ndii in his Saturday Nation article of March 29, 2014, on the presentation I made at the launch of the national debate on the public wage bill sustainability on March 10, 2014, cannot go unchallenged. (READ: Fellow Kenyans, government is lying on wage bill)

Apart from the many unsubstantiated insinuations about lies on the part the ministry of Devolution and Planning and the government as a whole, the article contains many factual inaccuracies and outright distortions that Kenyans must be made aware of, so that we can proceed rationally with the national debate on this important subject. I write to refute such untruths rather than the anti-government propaganda warfare which Ndii seems so keen to wage.

To start with, Ndii’s article states that contrary to my presentation, the government wage bill cannot be 13 per cent (pc) of GDP and 51pc of revenue as projected by the government or the 2013/14 financial year.

This he argues is because “we know that our revenue is just under 24pc of GDP”. I wish to clarify that total revenue and grants as a percentage of GDP averaged 26.6pc (not 24pc) between 2008/09 and 2012/13 according to “2013 Economic Survey”. Revised estimates for 2013/14 put the expected figure at that level or a little higher.

As I explained, on the basis of the government’s revised estimates, the public sector wage bill is likely to consume 51pc of revenue and 13pc of GDP this financial year and this is not as far-fetched as Ndii states.

The ministry’s position is supported by the Kenya Parliamentary Budget Office Policy Paper of November, last year, indicating a more widely-shared view than the article indicates.

In view of this, to say that one per cent of GDP collected in revenue has disappeared (or the figures cooked) should be seen as pure mischief.

Ndii proceeds to state that spending 35pc of all public expenditure (and 29pc of all recurrent expenditure) on salaries and benefits this financial year should not be an issue because “these ratios are excellent”.

The government is concerned because such a wage bill crowds out development spending and procurement of goods and services that the public service, at national and county levels, needs in order to serve Kenyans better.

HIGHEST WAGE BILL

Even more alarming, Kenya now has the dubious distinction of having the highest wage bill out of GDP spending in Eastern Africa. IMF estimates, which only capture the central government wage (excluding parastatals, TSC and other independent commissions, County governments and security agencies) put the 2012/13 wage bill to GDP ratio in Uganda at 3.9pc, Tanzania at 6.3pc, and Kenya at 7pc.

When we add the wage numbers of these institutions, it brings the Kenyan Wage to GDP ratio to 13pc as was stated previously. These figures may appear excellent to Ndii, but they are unacceptable to the Kenyan government given its long-term commitments to creating jobs, modernising our education and health services and making them more widely accessible, building more infrastructure and generating more energy, among other commitments.

This is the promise, of the government, to provide services to its people, not to spend on itself.

The largest part of Ndii’s article is taken from a policy paper he co-authored with Harris Mule and Prof Terry Ryan more than a decade ago.

Between 1971 and 2003, he claims, top civil servants increased their salaries at two and a half times in inflation adjusted terms. Those at the bottom lost 25pc of their wages to inflation, while those in the middle public service ranks may have lost 70pc of their earnings in real terms.

This resulted in gross disparities between the highest and lowest paid public servants.

My presentation mentioned the same disparity, indicating that the government had recognised the problem and was seeking a solution. My ministry is just as concerned about rationalising the public service, matching total wage packages to productivity, and reducing the gap between the top and the bottom cadres of our public service.

KIPPRA is part of the Ministry of Devolution and Planning and its report indicates that the lowest paid public officers now earn just one per cent of the income of the highest paid. This is hardly the case of a ministry concealing disparities in order to benefit the well-paid ranks in public service.

The article concludes by insinuating that the wage bill debate initiated by the President “is a red herring” intended to send the SRC on a wild goose chase.” This is inaccurate and in bad taste.

Kenyans should be assured that the Ministry of Devolution and Planning, and the Government as a whole mean every word we say, and are committed to enhancing the public service delivery experience of every Kenyan by guaranteeing efficient, effective and citizen centric public service delivery.

Anne Waiguru is Cabinet Secretary for Devolution and Planning