Public Service Cabinet Secretary Moses Kuria on Thursday directed the Public Service Commission (PSC) chairperson Anthony Muchiri to freeze the employment of staff in government jobs.
In a notice to the PSC boss, CS Kuria attributed the move to the austerity measures recommended by the National Treasury following the withdrawal of the defunct Finance Bill 2024.
According to the CS, the recommendations by Treasury CS Njuguna Ndung’u were critical in controlling the runaway recurrent expenditures.
“As outlined during his Budget presentation to Parliament on 13th June 2024, this measure is critical in controlling runaway recurrent expenditures and aligning with austerity measures across government,” CS Kuria stated.
CS Kuria further noted the move aligned with the recommendation to reduce the Wage bill to 35 per cent of revenue as provided in the Public Finance Management Act 2012.
The Public Finance Management Act of 2012 provides that the country’s public wage bill should not exceed 35 per cent of the national budget.
“Our current expenditure on salaries, allowances, and benefits for public servants exceeds sustainable levels, placing undue strain on our national finances,” the CS reiterated.
“This is hindering our ability to allocate resources towards essential national priorities,” he added.
CS Kuria clarified that during the suspension of employment, the government will conduct an audit and clean all public payrolls.
The move comes barely three days after President Ruto ordered a freeze on pay hikes for all government officials.
Ruto directed the National Treasury to review the gazette notice issued by the Salaries and Remuneration Commission (SRC) recommending an increase in the salaries of state officers.
While issuing the orders, the Head of State emphasized that the executive and all arms of government to live within their means in light of the Finance Bill, 2024 withdrawal.