Public Service Cabinet Secretary Moses Kuria on Thursday, July 4 asked the Public Service Commission (PSC) to suspend the recruitment of new staff into government jobs for the next year.
In a notice to PSC Chairperson Anthony Muchiri, the CS explained that the decision was due to the spending cuts advised by the National Treasury after the withdrawal of the Finance Bill 2024.
According to the CS, the recommendations to halt hiring new staff were suggested by Treasury CS Njuguna Ndung’u, which he noted were critical in controlling the ongoing government expenses.
“As outlined during his Budget presentation to Parliament on 13th June 2024, this measure is critical in controlling runaway recurrent expenditures and aligning with austerity measures across government,” CS Kuria stated in his notice.
CS Kuria further mentioned that the decision is in line with the recommendation to cut the wage bill to 35 per cent of revenue from the current 43 per cent, as outlined in the Public Finance Management Act of 2012.
The Public Finance Management Act of 2012 states that the country’s public wage bill should not exceed 35 per cent of the national budget.
“Our current expenditure on salaries, allowances, and benefits for public servants exceeds sustainable levels, placing undue strain on our national finances,” the CS reiterated.
“This is hindering our ability to allocate resources towards essential national priorities,” he added.
During the suspension of employment, CS Kuria announced that an audit of public payrolls will be conducted, to optimize the public service towards the achievement of the recommended 35 per cent public wage bill-to-revenue ratio.
The move comes barely three days after the Salary and Remuneration Commission announced new salary increments for state officials, prompting President William Ruto to direct the National Treasury to review the gazette notice issued by the commission.
In a statement, the head of state said that all arms of government must live within their means.
“In light of the withdrawal of the Finance Bill 2024 and the fiscal constraints expected this financial year, this is a time, more than ever before, for the Executive and all arms of government to live within their means,” he noted.
