Public Servants Risk Losing Jobs as the Broke Government Considers Retrenchment as the Best Solution to Reduce Wage Bill

    The government employees risk losing their long served jobs with the current government consideration to retrench public service workers as a way of reducing the wage bill.

    A meeting has been called by the
    The Salaries and Remuneration Commission (SRC) to discuss how to reduce the wage bill with hopes of implementing the same in the next three years.

    According to SRC, the wage bill has reduced with 9.23% of the country’s total revenue in the 2013-2014 financial year and the last financial year, as they look forward to implementing more measures to reduce the wage bill to 35%.

    The SRC chairperson Lyn Mengich statement on wage bill reads, “A wage bill that does not match economic revenue growth puts pressure on development and investment share of the fiscal budget, meaning that there is less money to devote to development projects and provision of social services such as medical care and education.”

    The decision to review the wage bill has been as a result of declining revenue collections by Kenya Revenue Authority (KRA) and high foreign debt payments, which have forced the National Treasury to cut the budget massively.

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