14 February 2013

Kenya: Sh450 Billion Wage Bill Unsustainable ? Serem

Kenya's current wage bill cannot be sustained for the next five years, the Salaries and Remuneration commission has said.

SRC chair Sarah Serem said Kenya's economy is overburden by huge, unaffordable and unsustainable remuneration that stands at Sh450 billion.

"Various international studies have shown that when the wage bill is lower than the GDP, economies are not only sustainable but they thrive resulting to improved standard of living," she said.

Serem was speaking at the Eldoret Municipal Hall at a meeting with residents of Uasin Gishu. She said SRC is committed to ensuring the huge disparities between the highest paid public servant and the lowest which stands at 169 per cent is reduced.

"Our survey has showed that we were rating much hire in terms of the difference between the highest and the lowest paid public officer not only in Africa but also to most developed countries in the world," Serem said.

According to the SRC survey, the disparities between the highest and the lowest paid public officers were as follows: Rwanda 72 per cent, South Africa 27 per cent, United Kingdom 9 per cent, Kenya 169 per cent.

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