NAIROBI, Kenya – National Treasury Cabinet Secretary John Mbadi has raised the alarm over Kenya’s ballooning public wage bill, warning that the country’s government structure is too costly and unsustainable.
Speaking on Citizen TV’s JKLive on Wednesday, Mbadi revealed that salaries at the national government level alone consume Sh960 billion annually, a figure that is expected to surpass the Sh1 trillion mark soon.
“The government is costly. Today, we are paying Sh80 billion per month at the national government level for salaries. Per year, it is Sh960 billion, and it’s going to a trillion shillings. We are collecting Sh2.5 trillion while spending Sh1.1 trillion on loan repayment—so where do you get money for development?” he posed.
The Treasury CS noted that beyond the wage bill, Kenya is grappling with massive debt obligations, with loan repayments alone taking up Sh1.1 trillion per year.
This, he said, leaves little room for funding development projects, forcing the government to rely on grants and external support to sustain economic growth.
“We are just lucky that somehow we have development partners who pump in some money, some in the form of grants, and they help us to grow,” he admitted.
Mbadi also questioned Kenya’s current devolved system, arguing that the country is spending too much to maintain county governments, many of which mirror the national government’s bureaucracy.
“Forty-seven counties, each with a full-fledged government—a governor who is like a mini-president, a deputy, and ministers, all of them going for 10, which is the maximum. Then you have chief officers, more than 10, and county assemblies. It is unsustainable,” he said.
The CS suggested that Kenya may need to rethink its devolution model, hinting at a possible reduction in the number of counties.
“We need to have a conversation about whether we require the kind of government structure we have today. When I was in the Budget and Appropriations Committee, we asked for a cost analysis of the government, and the Auditor General did a comprehensive report. I wish we could revisit that report,” he said.
Mbadi’s remarks come amid ongoing concerns over Kenya’s rising wage bill, with more than half of government revenue going toward salaries and debt repayment.
His proposal to scale down the government structure—either by merging counties or restructuring devolution—could spark a heated national debate as the country grapples with financial sustainability.
With the government under pressure to fund development projects, manage debt, and stimulate economic growth, the Treasury CS insists that tough decisions need to be made before the economy reaches a breaking point.
