As Kenya’s public wage bill moves closer to the Sh1.3 trillion mark, the Salaries and Remuneration Commission has opened a new front in the debate, arguing that attention should no longer be fixed on how much the government pays its workers, but on what those payments produce for citizens in return.
The commission says the country’s challenge is no longer only about rising salary costs, but whether public institutions are delivering value through improved services and measurable results. It now wants a shift in focus from payroll figures to performance outcomes across the civil service.
To advance this agenda, the SRC has announced a three-day National Productivity and Performance Conference set for Nairobi from June 17 to June 19. The meeting will bring together senior government officials, private sector players, civil society groups, academia and development partners to discuss ways of improving efficiency in public service.
President William Ruto is expected to chair the conference, alongside Deputy President Kithure Kindiki, Chief Justice Martha Koome, National Assembly Speaker Moses Wetang’ula and Senate Speaker Amason Kingi. The event will also feature recognition of institutions that have recorded strong performance in service delivery.
SRC chairperson Sammy Chepkwony said attempts to control the wage bill through legal limits and fiscal measures have not delivered the expected results over the years.
“It is over 10 years since the Public Finance Management Act was put in place, yet the 35 per cent cap is yet to be achieved,” Chepkwony told journalists in Nairobi.
The Public Finance Management Act, 2012, requires that spending on salaries and wages should not exceed 35 per cent of total revenue. However, most public bodies are still above that limit.
SRC data shows that only four counties — Elgeyo Marakwet, Nyandarua, Trans Nzoia and Nyeri — are currently complying with the requirement.
The wage-bill-to-revenue ratio currently stands at 41 per cent, according to the commission, down from 55 per cent in 2020, but still above the legal threshold.
The commission also warned that the public wage bill is projected to reach nearly Sh1.3 trillion by June 2025, raising concern over sustainability at a time of rising debt repayment pressures and limited revenue growth.
Despite these figures, SRC insists the bigger issue is not the level of pay but the output generated by public servants.
“The question is, should we be rewarding employees for activities or the outcomes?” Chepkwony posed. “Public service productivity has stagnated compared with the private sector,” he added.
The commission wants performance appraisal systems to move away from activity-based targets and instead focus on measurable results and service delivery impact.
Chepkwony said Kenya’s public sector faces a productivity gap that has persisted even as spending on personnel continues to rise.
Data presented by SRC, attributed to the International Labour Organisation, shows Kenya ranked 142nd out of 182 countries in global labour productivity in 2025, an improvement from 155th out of 189 countries in 2023.
Within Africa, Kenya moved up to 21st out of 52 countries in 2025 from 27th out of 53 countries in 2023.
However, Kenya still trails several African economies including Gabon, Mauritius, Libya, Algeria, Egypt, Djibouti, Eswatini, Botswana, South Africa and Tunisia.
Globally, Luxembourg led the rankings, followed by Ireland, Norway, Guyana, Denmark and Singapore.
SRC figures further show Kenya’s labour productivity stood at about $7,750, equivalent to Sh1.002 million, per worker annually in 2025.
This compares with much higher output in other economies, including Singapore at $117,500 per worker, the United States at $121,500, Japan at $92,000, Germany at $89,600, Malaysia at $30,600 and China at $20,100.
In Africa, Ghana recorded $12,600 per worker while South Africa stood at $17,500, both ahead of Kenya.
SRC officials said continued salary growth without matching productivity gains would strain public finances without improving services.
“The solution is to promote productivity in the public sector,” Chepkwony said, noting that reforms had already begun through a circular from Head of Public Service Felix Koskei directing government agencies to prioritise productivity measurement.
Intergovernmental Relations Technical Committee chairperson Kithinji Kiragu said improved productivity would translate into stronger economic performance and higher incomes.
“When we focus on productivity, even incomes will grow, as the economy will do better,” Kiragu said.
Public Service Commission chairman Francis Meja said the upcoming conference offers an opportunity to rethink how government performance is measured.
“The conference is timely. It has been realised that the wage bill is not the problem but productivity,” Meja said.
County Assemblies Forum representative Jackline Waithaka said the success of the initiative will depend on whether it leads to real improvements in service delivery for citizens.