In absolute amounts, Kenya’s public service wage bill has continued to rise in an environment of revenue and financing constraints. The current ratio of the public wage bill to total revenue is estimated at 43.54 per cent in the financial year (FY) 2022/2023, which is above the target of 35 per cent provided for in the PFM Act, 2012.


According to the International Labour Organization (ILO), 2021, on labour productivity, Kenya is ranked 151 out of 185 countries ranked in the world, and 22 out of 46 countries in Africa.


Productivity gains are a key route to sustainable economic growth. It aligns the public service in pursuit of; lower wage bill to revenue ratio, and thus, more resources available for development; enhanced cost efficiency, accountability, and efficient utilisation of public resources; improved revenue and economic growth; improved service delivery and enhanced value for money; and reduced cost of doing business, thereby, increasing the country’s competitiveness.


The NWBC will bring together stakeholders to deliberate on strategies and develop action plans for wage bill sustainability with an aim of achieving the PFM threshold of 35 per cent wage bill to revenue ratio, as guided during the Summit. Further, the NWBC will provide an opportunity for sharing experiences on best practices that will lead to productivity growth and provide approaches in addressing emerging challenges in public service wage bill sustainability.