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Originally published by The Standard BusinessNovember 5, 2025
4h ago
Mbadi flags Sh80b monthly wage bill, warns it threatens economy

National Treasury Cabinet Secretary John Mbadi has warned that the country’s growing wage bill poses a major fiscal risk...
✨ Key Highlights
National Treasury CS John Mbadi has warned that Kenya's rising monthly wage bill, now at Sh80 billion, poses a significant threat to the economy by crowding out development projects. He emphasized the need for fiscal discipline despite pressures to increase salaries, including those for university staff.
- The government's monthly wage bill has increased from Sh75 billion in January to approximately Sh80 billion, meaning nearly Sh960 billion annually.
- CS Mbadi stated that the percentage of ordinary revenue allocated to salaries has risen from 16% in 2013 to over 40% today, which he described as "simply unsustainable."
- The Treasury plans a phased payout of Sh7.76 billion for outstanding arrears owed to university staff under the 2017–2021 Collective Bargaining Agreement (CBA), with 50% to be paid in the 2025/26 financial year and the remaining 50% in 2026/27.
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