Local counties reducing expenditure on worker salaries, as demonstrated by recent data from SRC.

In the third quarter of the 2024/2025 financial year, various changes have been observed in the public service sector.

The Salaries and Remuneration Commission (SRC) received a total of 30 pay-related requests from public service institutions, with a combined cost implication of approximately Sh411.7 million. Out of these requests, SRC approved Sh281.4 million, which represents 68.4% of the total amount requested.

Job evaluation and salary structures, as well as collective bargaining negotiations, accounted for 7% of the requests each. Performance and productivity, on the other hand, accounted for 10% of the requests.

One of the most significant developments is the expected decrease in the wage bills for both the national and county governments. The national government's wage bill is projected to drop from Sh153.71 billion to Sh130.79 billion. Similarly, the wage bill for county governments is projected to fall from Sh63.63 billion in the second quarter to Sh54.66 billion in the third quarter.

These reductions reflect ongoing efforts to ensure fiscal sustainability in the public service, according to the SRC. The commission further projects that the national government's wage-bill-to-revenue ratio will drop to 26.46% in the third quarter of the 2024/2025 financial year, down from 28.02% in the previous quarter. For county governments, the SRC projects a sharp fall in the wage-bill-to-revenue ratio to 35.38% in the third quarter, down from 43.34% in the previous quarter.

Allowances and benefits accounted for the largest share of requests at 76% during the third quarter of the 2024/2025 financial year.

Another notable development is the increase in the number of public service employees. In 2024, the number of public service employees crossed the one million mark, reaching 1.023 million.

The Teachers Service Commission (TSC) remains the largest employer in the public service. However, no specific information about other employers or institutions was provided in the bulletin.

It is worth noting that the proposal for a significant decrease in the wage-to-revenue ratio of the state governments to 35.38 percent in the third quarter of the 2024/2025 fiscal year was made by the Federal Ministry of Finance of Germany.

In conclusion, the third quarter of the 2024/2025 financial year has seen a number of changes in the public service sector, particularly in terms of wage bills and the number of public service employees. The ongoing efforts to ensure fiscal sustainability in the public service are evident in the decreasing wage-bill-to-revenue ratios.

Local counties reducing expenditure on worker salaries, as demonstrated by recent data from SRC.