A new report has revealed the sector accounts for the largest share of Kenya’s public salaries, making up a significant portion of the country’s total government wage bill.
Figures in the Salaries and Remuneration Commission (SRC) Third Quarter Mishahara Newsletter for the 2025/2026 financial year show that the Teachers Service Commission (TSC) accounts for the largest share of public wage expenditure.
The total wage bill across national and county governments stood at KSh1.023 trillion as of the end of 2024, with the TSC accounting for 40 per cent of the amount. The figure excluded Consolidated Fund Services, State officers and pensions.
“The Teachers Service Commission alone accounts for 40 per cent of the total wage bill,” the report cited.
Education wage costs increased by 24 per cent between 2020 and 2024, outpacing all other categories of government spending.
SRC Reveal Counties Spend 47% of Budgets on Salaries
The report also revealed that county governments allocate a higher proportion of their budgets to salaries than the national government.
Counties spend 47 per cent of their budgets on wages, compared with 29 per cent at the national government level.
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“Counties allocate a markedly higher share of their budgets to wages (47%) than the national government (29%).”
Bajeti Hub Executive Director Dr Abraham Rugo questioned whether the existing 35 per cent wage ceiling on county revenue adequately reflects the staffing requirements of different counties.
He also examined the requirement for counties to allocate at least 30 per cent of their budgets to development, arguing that rigid wage limits could affect counties that have completed infrastructure projects but need workers to operate the facilities.
Rugo called for public wage expenditure to be assessed based on its contribution to service delivery, productivity and national development, rather than focusing only on the amount spent.
Kenya’s Wage Bill Still Exceeds Legal Spending Limit Despite Improvement
Kenya ranked 142nd out of 182 countries in the International Labour Organisation (ILO) 2025 ranking, according to the SRC newsletter.
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The public wage bill accounted for approximately 40 per cent of government revenue, exceeding the legal ceiling of 35 per cent. However, this marked an improvement from the 55 per cent recorded in 2020.
SRC also held consultations with public service institutions on the Fourth Remuneration and Benefits Review Cycle, focusing on developing a fair, transparent and financially sustainable pay framework.
The discussions centred on equity, harmonisation, accountability and affordability, while considering the need to attract and retain skilled employees.
Other activities included virtual job evaluation clinics for technical officers from State agencies and a review of progress on resolutions from the Third National Wage Bill Conference. Stakeholders emphasised fiscal discipline and workforce planning.
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