NAIROBI – Former Interior Cabinet Secretary Dr. Fred Matiang’i on Wednesday, November 19, 2025, pledged to implement a “lean government” model to curb wasteful public spending, arguing that a bloated administration is a primary driver of Kenya’s fiscal distress. Speaking at a public forum in Nairobi, the presidential aspirant outlined a strategy that includes merging ministries, scrapping constitutionally contentious administrative posts, and undertaking a radical overhaul of state-owned enterprises. “The size of government we have right now is a drain on our resources,” Dr. Matiang’i stated, directly criticizing the current administration for what he termed “illogical payments” and poor prioritization. “Even when I was in government, there were things I saw that we could do without. This administration has taken it to a whole new level.”

The Weight of the Public Wage Bill

Dr. Matiang’i’s proposal comes as Kenya grapples with a public sector wage bill that threatens economic stability. According to the National Treasury, monthly salary expenditures surged to KSh 80 billion by November 2025, totaling nearly KSh 960 billion annually. This figure consumes over 40% of ordinary revenue, a sharp increase from 16% in 2013 and well above the 35% ceiling stipulated by the Public Finance Management (PFM) Act. The Salaries and Remuneration Commission (SRC) has repeatedly warned that this high expenditure constrains funds available for critical development priorities such as healthcare, infrastructure, and education. Reports from the Controller of Budget (CoB) and the Auditor-General consistently highlight areas of rampant wastage. CoB Margaret Nyakang'o has flagged excessive spending on non-essential items, including KSh 3.5 billion on travel in the first quarter of the 2024/25 fiscal year alone. The Auditor-General's 2023/2024 report further exposed billions lost to poor project planning, overpriced procurement, and mismanaged loans, including KSh 1.58 billion paid in commitment fees for undrawn loans.

Matiang’i’s Blueprint for a Leaner State

At the core of Dr. Matiang’i’s plan is a significant reduction in the size of the executive. His key proposals include:

• Merging Ministries and Departments: To eliminate functional overlaps and redundancies that create inefficiency and increase operational costs.
• Abolishing Chief Administrative Secretary (CAS) Positions: Dr. Matiang’i vowed to scrap the CAS positions, which have been twice declared unconstitutional by the High Court. The courts found that the creation of 50 CAS posts, an expansion from the original 23, lacked the necessary public participation and duplicated the roles of Principal Secretaries, adding an unnecessary layer to the wage bill.
• Comprehensive Parastatal Reform: Reviving and implementing long-stalled reforms of state-owned enterprises. A 2013 presidential task force recommended cutting the number of parastatals from 262 to 187 to curb their reliance on government bailouts, but implementation has been hampered by a lack of political will.
• Digitization of Government Services: Accelerating the automation of public services to enhance transparency, reduce opportunities for corruption, and cut administrative costs—a policy Dr. Matiang’i championed during his tenure as ICT Cabinet Secretary.

Political and Economic Implications

The pledge to shrink government places Dr. Matiang’i, Jubilee Party's endorsed presidential candidate for 2027, at the center of a crucial national debate on fiscal responsibility. Proponents argue that a leaner government would free up billions of shillings for development projects and debt repayment, potentially easing the tax burden on Kenyans. With government debt standing at 68% of GDP in March 2023, up from 39% in 2010, fiscal consolidation is a priority. However, the proposal is expected to face significant political headwinds. A reduction in government size would likely lead to public sector job losses, inviting fierce opposition from trade unions. Furthermore, the extensive patronage networks that thrive on a large public sector mean that any attempts at reform will be resisted by political interests benefiting from the status quo. Economic analysts note that while reducing recurrent expenditure is critical, the effectiveness of such reforms depends on their execution. Past attempts at parastatal reform have often stalled, demonstrating the difficulty of implementing such changes. The success of Dr. Matiang'i's proposed austerity measures would hinge on sustained political will and the ability to manage the socio-political fallout from the reforms. As the 2027 election cycle approaches, the debate over the size and cost of government is set to intensify. Dr. Matiang’i has positioned his campaign on a platform of fiscal prudence and administrative efficiency, challenging his rivals to offer competing visions for steering Kenya out of its economic challenges.