The Lower Eastern Times Opening The Third Eye
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A recent analysis by the Salaries and Remuneration Commission (SRC) has revealed that 41 counties are still violating the Public Finance Management (PFM) Act, which limits spending on personnel emoluments to 35% of total revenues.
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According to the Second Quarter Wage Bill Bulletin (October–December 2024), county governments increased their expenditure on salaries and allowances from KSh 38.69 billion in Q1 to KSh 52.16 billion in Q2 of the 2024/2025 financial year — a 34.8% jump.
The SRC flagged this as unsustainable, stating:
“Only six counties — Nakuru, Kwale, Busia, Tana River, Narok, and Kilifi — complied with the 35% threshold.”
Although the share of salary-related spending in overall county budgets fell slightly from 69.5% in Q1 to 61.9% in Q2, it remains far above acceptable levels. The ratio of personnel costs to ordinary revenue also dropped marginally from 44.01% to 41.13%.
The SRC cautioned that exceeding legal limits on salary spending undermines counties’ capacity to invest in development and essential services, and urged county governments to restructure their budgets and tighten spending controls.
In contrast, the national government stayed within the recommended limits, with its wage bill as a percentage of revenue expected to decrease from 31.7% to 25.7%, despite a rise in total personnel costs from KSh 170.29 billion to KSh 212.53 billion.
The SRC has renewed its call for fiscal discipline and sustainable wage management across all levels of government.
