Kenya: President Kenyatta and his deputy take 20% pay cut

Kenyan President Uhuru Kenyatta (l) with his deputy William Ruto. PHOTO/Billy Mutai

Kenyan President Uhuru Kenyatta and his Deputy William Ruto are set to take a 20 percent salary cut. The east African country’s Cabinet secretaries too will be taking a 10 percent pay cut. This is in line with the new austerity measures put in place by the Kenyatta administration.

The changes are effective immediately.

The salary freeze by Kenya’s executive comes as concerns continue to rise about the country’s public sector wage bill, with analysts warning that it is rising to unsustainable levels.

The Kenyatta administration would also only restrict international travel for its officials to only essential trips.

“Wastage in my administration will be significantly reduced,” Kenyatta told a news conference, he added that the actions would “demonstrate our firm resolve to properly manage” public funds.

In a speech last April, Kenyatta said that at around Ksh458 billion (US$5.3 billion) public sector wages made up 12 percent of Kenya’s gross domestic product (GDP), compared to a “globally recommended average of 7 percent of GDP”.

This past January, Kenyatta ordered an audit of the public sector payroll to end the practice of corrupt officials claiming salaries on behalf of “ghost employees” – workers who have died, retired or deserted their duties.

Kenya’s economy expanded at a below-target 5.1 percent in 2013 but growth is expected to accelerate to 5.8 percent this year.

Source: Newswires