Nairobi — The National Government will cut the public sector wage bill by 35 per cent by the year 2028 in line with the Public Finance Management (PFM) Act 2012.

President William Ruto's administration revealed the ambitious target even as it asked county government to align.

The undertaking, contained in a joint communique signed by Deputy President Rigathi Gachagua and Council of Governors Chairperson Anne Waiguru, was made on Monday at the conclusion of the 10th Ordinary Session of the National and County Governments Coordinating Summit held at State House, Nairobi.

To further the realization of the ambitious target, the national government offered to convene a Wage Bill Conference to rally efforts towards reduction of wage bill expenditure.

"That Salaries and Renumeration Committee (SRC) jointly with Intergovernmental Relations Technical Committee (IGRTC) and Council of Governors (COG) shall convene the Wage bill conference," read the communique.

The PFM Act seeks to guarantee that public finances are handled at both the national and county government in conformity with the values outlined in the Constitution to enable the effective and efficient use of scarce resources.

The Act guarantees that public officials tasked with overseeing money will be accountable to the public through County Assemblies and Parliament how the funds are managed.

Other resolutions made at the Intergovernmental Summit include the extension of Managed Equipment Service (MES) contracts to March 2024.

The Summit tasked a joint technical committee of the MoH and CoG to develop a transition to county-owned medical equipment.

The national government offered up to 30 per cent of funding for counties acquiring own health equipment on condition that they meet transparency requirements.

President Ruto's administration also extended support for Community Health Promoters from three to five years committing an additional 7,809 CHP kits through MoH.