John Mbadi Warns of Kenya’s Expensive Government and Unsustainable Wage Bill
John Mbadi, the National Treasury Cabinet Secretary, has raised concerns over Kenya’s expensive government structure, citing the unsustainable wage bill as a major challenge. Speaking on Citizen TV, Mbadi revealed that the national government alone spends Sh960 billion annually on salaries, a figure that is expected to surpass Sh1 trillion soon. This, coupled with the country’s Sh1.1 trillion yearly loan repayments, has left little room for development, slowing down the economy.
Mbadi emphasized that Kenya’s revenue collection stands at Sh2.5 trillion annually, but a significant portion is consumed by salaries and debt servicing. He noted that the country’s development has largely been sustained by grants from development partners, which he termed as “luck.” According to Mbadi, it is time for Kenyans to have a serious conversation about the current form of government and whether it aligns with the nation’s financial realities.
The Cabinet Secretary also pointed out that the 47 devolved units established under the 2010 Constitution have become financially unsustainable. Each county operates with a full-fledged government, including governors, deputies, ministers, and county assemblies, all of which contribute to the ballooning wage bill. Mbadi suggested that reverting to the eight-province system could help address the current financial crisis.
John Mbadi on Kenya’s Ballooning Wage Bill
John Mbadi has highlighted the alarming growth of Kenya’s wage bill, which currently stands at Sh960 billion annually. He explained that the national government spends Sh80 billion monthly on salaries, leaving little room for development projects. With loan repayments consuming Sh1.1 trillion yearly, the country’s economic growth has been sluggish.
Mbadi stressed that the current revenue collection of Sh2.5 trillion is insufficient to cover both salaries and debt servicing. He warned that without significant reforms, the wage bill could soon exceed Sh1 trillion, further straining the economy. The Cabinet Secretary called for a national dialogue to address these challenges and explore ways to reduce the cost of running the government.
He also pointed out that the 47 counties, each with a full-fledged government, have exacerbated the problem. The devolved units, while intended to bring services closer to the people, have become a financial burden. Mbadi suggested that streamlining the county governments could help reduce the wage bill and free up funds for development.
John Mbadi Calls for National Dialogue on Government Structure
John Mbadi has urged Kenyans to engage in a national conversation about the structure of the government. He believes that the current system, established under the 2010 Constitution, is too expensive and unsustainable. Mbadi recalled his time as a member of the Budget and Appropriations Committee, where he raised concerns about the cost of running the government.
He mentioned a detailed report compiled by former Auditor General Edward Ouko, which outlined the financial implications of the current government structure. Mbadi expressed hope that the report could be revisited to inform the national dialogue. He emphasized the need for Kenyans to decide whether they want to continue with the current system or adopt a more cost-effective model.
Mbadi also criticized the 47 devolved units, stating that they have become a financial burden. Each county operates with a governor, deputy, ministers, and county assemblies, all of which contribute to the high wage bill. He suggested that reverting to the eight-province system could help address the financial challenges facing the country.
John Mbadi Highlights Role of Development Partners
John Mbadi acknowledged the role of development partners in sustaining Kenya’s development. He noted that grants from these partners have been crucial in funding various projects, especially given the country’s limited resources. However, he termed this support as “luck” and warned against over-reliance on external funding.
Mbadi emphasized the need for Kenya to become self-reliant and reduce its dependence on grants. He called for reforms to streamline government operations and reduce the wage bill, which would free up funds for development. The Cabinet Secretary also stressed the importance of improving revenue collection to ensure sustainable economic growth.
He reiterated that the current government structure is too expensive and unsustainable. Mbadi urged Kenyans to have a serious conversation about the future of the country’s governance and explore ways to reduce the cost of running the government.
John Mbadi on the Impact of Devolution
John Mbadi has expressed concerns over the impact of devolution on Kenya’s finances. He noted that the 47 counties, each with a full-fledged government, have significantly increased the wage bill. This has left little room for development, as a large portion of the national budget is consumed by salaries and debt servicing.
Mbadi suggested that the eight-province system, which existed before the 2010 Constitution, could be a more cost-effective model. He argued that the current system, while well-intentioned, has become a financial burden. The Cabinet Secretary called for reforms to streamline the county governments and reduce the wage bill.
He also emphasized the need for a national dialogue to address these challenges. Mbadi believes that Kenyans must decide whether they want to continue with the current system or adopt a more sustainable model. He warned that without significant reforms, the country’s economic growth will continue to be sluggish.
John Mbadi’s Call for Reform
John Mbadi has called for urgent reforms to address Kenya’s financial challenges. He highlighted the unsustainable wage bill, which currently stands at Sh960 billion annually, and the Sh1.1 trillion spent on loan repayments yearly. Mbadi warned that without significant reforms, the country’s economic growth will continue to be sluggish.
He emphasized the need for a national dialogue to explore ways to reduce the cost of running the government. Mbadi also suggested that reverting to the eight-province system could help address the financial challenges facing the country. He urged Kenyans to engage in a serious conversation about the future of the country’s governance.
Mbadi acknowledged the role of development partners in sustaining Kenya’s development but warned against over-reliance on external funding. He called for reforms to streamline government operations and improve revenue collection. The Cabinet Secretary believes that these measures are crucial for ensuring sustainable economic growth.
