Low productivity within government institutions has been identified as a major setback in efforts to transform the public sector and improve service delivery to citizens.
Lawmakers and officials from the Salaries andRemunerationn Commission (SRC) have raised concerns that inefficiency, corruption, and the existence of ghost workers are inflating the public wage bill while undermining public trust.
SRC was appearing before the National Assembly Labour committee for consideration of the Budget policy statement (BPS).
"Many Kenyans have lost confidence in the public sector due to corruption and the poor quality of services. He noted that citizens often feel they do not receive value for money from public institutions funded by their taxes," said Hon. Fabian Muli (Kangundo) observed that Chairperson of SRC Mr. Sammy Chepkwony told members that compared to other jurisdictions, Kenya’s public sector productivity levels remain significantly low.
This, he argued, continues to hinder meaningful reforms aimed at enhancing efficiency and accountability in government operations.
The SRC explained that if all public servants were to operate at maximum productivity, the country’s wage bill would fall well below the recommended 35 per cent constitutional threshold of national revenue.
"The current wage bill pressure is largely a function of inefficiency and weak productivity controls rather than the sheer number of employees alone," said Chepkwony.To address the challenge, the SRC proposed a shift toward performance-based remuneration. The Commission stated that capping salary growth and linking pay to measurable productivity outcomes would help reward efficiency instead of relying on automatic salary increments. Such a model would promote accountability andincentivisee better performance across government institutions.
The committee chair also raised concerns about the persistent problem of ghost workers, noting that fictitious employees significantly distort payroll figures and widen the wage bill gap.
In response, the SRC Chairperson called for enhanced intervention measures to enable the Commission to thoroughlyscrutinisee payrolls across ministries, state agencies, and county governments.
The Commission further sought additional resources to facilitate logistical operations required to move verification teams across the country to conduct workforce audits. SRC officials stressed that cleaning payrolls at the primary level; before payments are processed, remains the most effective way to curb illegal payments.
Additionally, the Commission is seeking expanded legal authority, including prosecution powers, to pursue individuals involved in illegal salary payments, ghost worker schemes, and the recovery of unlawfully acquired public funds.
Lawmakers underscored that restoring public confidence in government institutions will require firm action, strengthened oversight, and a renewed focus on productivity to drive reforms within the public service.