Introduction: Kenya’s Rising Cost of Governance

Kenya is facing one of the most serious fiscal challenges in its history. Public debt has crossed KES 10 trillion, recurrent expenditure continues to rise, and development spending is shrinking. Kenyans are asking tough questions:

• Why does government consume so much money?
• Where is public money going?
• Can Kenya realistically reduce its spending without compromising essential services?

This article breaks down the true cost of running the government and offers practical, achievable areas where Kenya can cut expenditure while improving efficiency and accountability.

1. Understanding Kenya’s High Recurrent Expenditure

1.1 Wage Bill — The Biggest Cost Driver

Kenya’s public wage bill consumes nearly 50% of all revenue collected. This includes salaries for:

• Civil servants
• State officers
• County staff
• Security agencies
• Parastatal employees
• Political office holders

The Salaries and Remuneration Commission (SRC) has repeatedly warned that Kenya’s wage bill is unsustainable, with duplication, overstaffing, and ghost workers being common problems.

Key Issues

• Overlapping roles at national and county levels
• Highly paid state officers
• Thousands of employees in state corporations
• Non-merit recruitment driven by politics

1.2 Costly Political Structure & Representation

Kenya has one of the largest political representations per capita in Africa. The structure includes:

• 67 Senators
• 349 MPs
• 2,100+ MCAs
• Governors & Deputies
• Women Reps
• Cabinet & PSs
• Countless boards, commissions & advisors

These offices come with:

• Salaries
• Allowances
• Staff
• Security
• Motor vehicles
• Oversight budgets
• Foreign trips
• Committee sittings

This structure is expensive to maintain.

1.3 Too Many State Agencies & Parastatals

Kenya has over 260 state corporations, many performing overlapping or outdated functions. Some survive on:

• Treasury bailouts
• Guaranteed loans
• Annual subsidies
• Emergency allocations

Examples include agencies duplicating work in:

• Agriculture
• Housing
• Environment
• Water
• Industrialisation
• Education
• ICT

A large portion of their budgets goes to administration, not service delivery.

2. Where Can Kenya Realistically Cut Government Expenditure?

⭐ 2.1 Reduce the Wage Bill Through Structural Reforms

Kenya can reduce expenditure by:

✔ Conducting a nationwide staff audit

Identify ghost workers, double salaries, and political appointments.

✔ Harmonising roles between national & county governments

No need for two sets of staff doing the same job.

✔ Freezing non-essential hiring

Focus hiring on health workers, teachers, police, and technical specialists.

✔ Performance-based contracts

Reward results, not positions.

⭐ 2.2 Merge or Eliminate Redundant State Corporations

The Presidential Taskforce on Parastatal Reforms previously recommended consolidating agencies. Kenya could save billions by:

• Merging agencies with overlapping mandates
• Closing non-performing parastatals
• Privatizing commercial state corporations that drain public funds
• Establishing fewer but stronger entities for key sectors

This would reduce:

• Boards
• CEOs
• Staff
• Allowances
• Office leases
• Vehicles
• Administrative costs

⭐ 2.3 Reduce Costly Political Privileges

This is politically sensitive but fiscally necessary.

Kenya can save money by:

• Cutting unnecessary allowances
• Reducing size of delegations for foreign trips
• Removing lifetime benefits for some retired officials
• Limiting committee sitting allowances
• Standardising benefits across state officers

If implemented, these reforms could save billions annually.

⭐ 2.4 Stop Unnecessary Government Procurement

Government spends large amounts on items like:

• New vehicles
• Office renovations
• Hotel meetings
• Consumables
• PR & communication contracts
• Consultancy duplication
• Per diems

Solutions:

• Use digital meeting platforms
• Enforce strict procurement ceilings
• Implement pooled procurement for ministries
• Reduce VIP vehicles and fuel allocations

⭐ 2.5 Strengthen County Spending Discipline

Counties often replicate national inefficiencies. Kenya can reduce spending by:

• Enforcing timely audits
• Cutting bloated executive offices
• Automating revenue systems
• Stopping procurement inflation
• Reducing pending bills
• Eliminating unnecessary trips & conferences

Better governance at county level improves overall fiscal health.

3. Medium-Term Structural Reforms Kenya Must Consider

3.1 Shift to a Leaner Government Structure

Public debate continues on whether Kenya should adopt:

• A smaller Parliament
• Less political seats
• Merged constituencies
• A two-tier or three-tier government structure

These reforms aim to reduce duplication and strengthen coordination.

3.2 Digitising Government Services

Digital government reduces:

• Corruption
• Manual errors
• Staff costs
• Procurement wastage
• Delays

Every service that moves online becomes cheaper and more efficient.

3.3 Public-Private Partnerships (PPPs)

Rather than borrowing for every project, Kenya can use PPPs for:

• Roads
• Housing
• Water
• Energy
• ICT infrastructure

This reduces direct government expenditure while still delivering services.

4. What Kenya Should NOT Cut

It is crucial to protect essential services:

✔ Healthcare

Especially Level 4 and 5 hospitals and community health units.

✔ Education

Teachers, infrastructure, digital literacy, school feeding programmes.

✔ Security

National stability and safety must be maintained.

✔ Social protection

Cash transfer programmes support the most vulnerable.

✔ Development spending

Roads, water projects, ICT, markets, and energy infrastructure stimulate growth.

Cuts should target waste—not essential services.

⭐ Conclusion: Kenya Must Spend Smarter, Not Just Spend Less

Kenya’s fiscal crisis isn’t simply a revenue problem—it’s an expenditure problem rooted in inefficiency, duplication, and wastage.
The solution lies in:

• Leaner government structures
• Reduced wage bill
• Merging state corporations
• Strict procurement discipline
• Stronger county-level accountability
• Aggressive digitisation
• Smarter planning and budgeting

If Kenya embraces these reforms, the country can lower its cost of governance while improving service delivery and restoring public confidence.

A more efficient government is not just good economics—it is a catalyst for sustainable development and a fairer future for all Kenyans.