Treasury Cabinet Secretary John Mbadi has raised concerns over the increasing cost of running the government, describing it as a major financial burden on the country.
Speaking on Citizen TV on Wednesday, March 20, Mbadi revealed that the national government’s wage bill alone stands at Ksh960 billion annually and is expected to surpass the Ksh1 trillion mark soon.
“The government is costly. Today, we are paying Ksh80 billion per month at the national government level for salaries. Per year, that amounts to Ksh960 billion, and it is heading to a trillion. We are collecting Ksh2.5 trillion and spending about Ksh1.1 trillion on loan repayment. So where do we get money for development? That is why our economy sometimes struggles,” he stated.
In addition to the growing wage bill, Kenya is also facing significant debt obligations, with annual loan repayments amounting to Ksh1.1 trillion. This leaves limited funds for development, which Mbadi noted is largely sustained by international grants.
“We are just fortunate to have development partners who inject funds, some in the form of grants, to support our growth,” he added.
Calls for National Debate on Government Structure
Mbadi also called for a national conversation on the country’s governance model, questioning whether the current system is financially sustainable. He recalled his tenure on the Budget and Appropriations Committee, where he had requested a cost analysis of the government, which was conducted under former Auditor General Edward Ouko.
“There must be a conversation. I was a member of the Budget and Appropriations Committee for 15 years. I wish we could revisit that report and have a serious discussion on whether the government structure we have today is necessary,” he remarked.
He further argued that the devolved system, with 47 counties each operating as full-fledged governments, is placing an enormous strain on public finances.
“We have 47 counties, each with a governor who is like a mini-president, a deputy governor, and a full cabinet of up to 10 ministers. On top of that, there are Chief Officers, county assemblies, and an extensive workforce. The financial weight of maintaining all these structures is simply too high,” Mbadi observed.
The CS suggested that reducing the number of devolved units or restructuring the government could be necessary to ease the financial strain and allow more funds to be directed towards development.
