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Fears of mass layoffs grow as Kenya's public sector wage bill hits a record Sh1.17 trillion, breaching legal limits and prompting IMF pressure.

A whirlwind is gathering over Kenya’s public service. In a chilling forecast that has sent tremors through government ministries, Treasury officials have privately conceded that mass retrenchments may be the only option left to tame a wage bill that has spiraled out of control. The figure is staggering: Sh1.17 trillion (KES) annually, consuming nearly half of the country's tax revenue.
This "wage bill bombshell," as insiders are calling it, is the result of years of unchecked hiring, ghost workers, and salary harmonizations that the economy simply cannot support. The Salaries and Remuneration Commission (SRC) has sounded the alarm, noting that the wage bill has breached the statutory cap of 35% of ordinary revenue, currently sitting dangerously at 43.7%.
The crisis is not just about legitimate salaries; it is about systemic leakage. A recent audit exposed thousands of workers on the payroll who do not exist—the infamous "ghost workers" who continue to draw salaries while the real workforce struggles with delayed pay. "We are paying people who died ten years ago," admitted a senior source at the Public Service Commission. "The payroll is bloated with fat that refuses to be trimmed."
The International Monetary Fund (IMF), which has been propping up the Kenyan economy with serial loans, has reportedly made "rationalization of the public service" a condition for the next disbursement. In diplomatic speak, "rationalization" means firing people.
Already, the effects are being felt. Recruitment has been frozen across most state departments. Promotions are on hold. The Teachers Service Commission (TSC), the country's largest employer, has warned it cannot hire the 20,000 interns it promised without additional treasury allocation—allocation that simply isn't there.
The proposed solution involves a mix of voluntary early retirement schemes (Golden Handshakes) and a ruthless payroll cleanse. But history suggests that "voluntary" schemes often rob the service of its best talent while the deadwood remains. As the Sh1 trillion mark is crossed, the question is no longer if the cuts will come, but when, and how much blood will be spilled on the floor of the civil service.
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