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Stifling wage bill...what next???
Rank: Elder Joined: 12/7/2012 Posts: 11,908
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What gava needs to do is put systems in place to deal with corruption and other leakages.... they they can talk. If they were serious they would have talked ghost workers issue first in a comprehensive way with clearly documented savings and some 100 people jailed etc Salary cuts wont solve our problems. smoke screen this is.... In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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I found it odd that UK was telling parastatal heads not willing to take salary cuts to go to court where whatever the courts award, it'll be cheaper to pay them and hire someone else to do their job at a lower pay. I couldn't help but wonder, is it really cheaper to pay someone for a job they didn't do because we fired them? Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Kenyans are among the highiest taxed,from this talk nobody will get employed despite the high numbers graduating,its the top cadre earners who drain this country and not the low earners.one mp can pay about 20 teachers so let action forcus the top fat fish. "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Wagebill "debate" is obviously linked to the Eurobond which is probably proving to be a hard sell. I think the concentration on the wage is a diversionary tactic. There is Ksh0.5trn being spent on wages. We'll only save Ksh50bn in the unlikely scenario of everybody taking a 10% paycut. If we were to get serious on corruption including pulling back what is abroad, I believe the savings would be higher than Ksh50bn Sehemu ndio nyumba
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Rank: Member Joined: 7/6/2010 Posts: 242
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My concern is that the wage bill takes 13% of GDP while the government debt takes about 46% of the GDP . Things don't look rosy ...
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Rank: Member Joined: 2/20/2009 Posts: 658
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Kausha wrote:It's very difficult to tell rank and file civil servants to take pay cuts in order to free up resources to develop the country. What GoK is forgetting is that the same civil service file rankers know very well the top dawgs who are accepting pay cuts at the higher ends will most probably be involved in collecting 'rent' from the increased development allocation and the 'rent' is enough to cover the entire annual gross salary of each of the top dawg. Where does that leave the rank and file civil servant with his/her measly pay? More poorer.
The solution to all this is to fix corruption in a very holistic and ruthless manner. We are operating a pure market system while at the same time allowing corruption to thrive. The two can't thrive together. At the moment there are quite a number of pricing bubbles in Kenya and Nairobi specifically because of corruption. Inflation on most items that high because a few people can afford to pay up which forces the rest of the population to pay up for the same goods because there is some demand of critical volumes thanks to corruption. A good number of those affording is thanks to corruption money. Everyone else is a bit under pressure to finance their purchase.
Instead of firing poor people, reform the entire GoK procurement, have a ministry of procurement that procures for the entire government and staff it with saints if you have to,otherwise we are chasing after our own tail and that means going nowhere almost all the time. You can't do pay cuts in an environment where corruption is widely practiced in the environment. Foregone incomes will just be replaced with aggression on the corruption side.
Ama this wage bill discussion is a smokescreen for the usual Cases because it doesn't make sense to me in it's current format. My thoughts exactly. Why can't the government fix the corruption monster first? What is it afraid of? End corruption and everything will fall into place rather easily, and probably they will not have to slash any salaries.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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segemia wrote:Kausha wrote:It's very difficult to tell rank and file civil servants to take pay cuts in order to free up resources to develop the country. What GoK is forgetting is that the same civil service file rankers know very well the top dawgs who are accepting pay cuts at the higher ends will most probably be involved in collecting 'rent' from the increased development allocation and the 'rent' is enough to cover the entire annual gross salary of each of the top dawg. Where does that leave the rank and file civil servant with his/her measly pay? More poorer.
The solution to all this is to fix corruption in a very holistic and ruthless manner. We are operating a pure market system while at the same time allowing corruption to thrive. The two can't thrive together. At the moment there are quite a number of pricing bubbles in Kenya and Nairobi specifically because of corruption. Inflation on most items that high because a few people can afford to pay up which forces the rest of the population to pay up for the same goods because there is some demand of critical volumes thanks to corruption. A good number of those affording is thanks to corruption money. Everyone else is a bit under pressure to finance their purchase.
Instead of firing poor people, reform the entire GoK procurement, have a ministry of procurement that procures for the entire government and staff it with saints if you have to,otherwise we are chasing after our own tail and that means going nowhere almost all the time. You can't do pay cuts in an environment where corruption is widely practiced in the environment. Foregone incomes will just be replaced with aggression on the corruption side.
Ama this wage bill discussion is a smokescreen for the usual Cases because it doesn't make sense to me in it's current format. My thoughts exactly. Why can't the government fix the corruption monster first? What is it afraid of? End corruption and everything will fall into place rather easily, and probably they will not have to slash any salaries. The boys have realised that corruption in gava is entrenched to the CORE! Cant Move, Wont Move! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 2/27/2007 Posts: 2,768
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Angelica _ann wrote:segemia wrote:Kausha wrote:It's very difficult to tell rank and file civil servants to take pay cuts in order to free up resources to develop the country. What GoK is forgetting is that the same civil service file rankers know very well the top dawgs who are accepting pay cuts at the higher ends will most probably be involved in collecting 'rent' from the increased development allocation and the 'rent' is enough to cover the entire annual gross salary of each of the top dawg. Where does that leave the rank and file civil servant with his/her measly pay? More poorer.
The solution to all this is to fix corruption in a very holistic and ruthless manner. We are operating a pure market system while at the same time allowing corruption to thrive. The two can't thrive together. At the moment there are quite a number of pricing bubbles in Kenya and Nairobi specifically because of corruption. Inflation on most items that high because a few people can afford to pay up which forces the rest of the population to pay up for the same goods because there is some demand of critical volumes thanks to corruption. A good number of those affording is thanks to corruption money. Everyone else is a bit under pressure to finance their purchase.
Instead of firing poor people, reform the entire GoK procurement, have a ministry of procurement that procures for the entire government and staff it with saints if you have to,otherwise we are chasing after our own tail and that means going nowhere almost all the time. You can't do pay cuts in an environment where corruption is widely practiced in the environment. Foregone incomes will just be replaced with aggression on the corruption side.
Ama this wage bill discussion is a smokescreen for the usual Cases because it doesn't make sense to me in it's current format. My thoughts exactly. Why can't the government fix the corruption monster first? What is it afraid of? End corruption and everything will fall into place rather easily, and probably they will not have to slash any salaries. The boys have realised that corruption in gava is entrenched to the CORE! Cant Move, Wont Move! The miraculous "Michuki Word" is enough to scuttle the corruption barons out of town. Unless, of course, you are saying Uhuru and Ruto are totally entangled in the vice to the extent that they are unsalvageable. Which now begs for the question...what business do they have being in leadership if they cannot control this corruption menace... ...besides, the presence of a safe alone does not signify that there is money inside...
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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josimar wrote:My concern is that the wage bill takes 13% of GDP. Things don't look rosy ... Its very worrying. Yesterday i was trying to look for this type of statistics worldwide, but i could not find reliable ones except for South Africa (12.1% of GDP) and Russia (3.4% of GDP). Most of Asia (except middle east) was less than 4.5%. Its just saddening, very very saddening. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Mainat wrote:Wagebill "debate" is obviously linked to the Eurobond which is probably proving to be a hard sell.
I think the concentration on the wage is a diversionary tactic. There is Ksh0.5trn being spent on wages. We'll only save Ksh50bn in the unlikely scenario of everybody taking a 10% paycut.
If we were to get serious on corruption including pulling back what is abroad, I believe the savings would be higher than Ksh50bn
Exactly. Thus the back and forth about the float date... Budget will come and go and this bond will still be a discussion...
All the best to KES and NSE while the US 10yr rate threatens to break above 3%...$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Veteran Joined: 12/4/2009 Posts: 1,982 Location: matano manne
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my two cents :How did Kibaki manage? No devolution no multiple institutions to gooble up funds. Devolution in iys current formation is not viable nor sustainable not to mention other constitutional offices.
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Bulsit-additional cost of devolution should minimal if there wasn't two parallel governments all the to watuka i.e. village. 2ndly-why increase the number of MPs as when you have MCAs? Why? Rahatupu wrote:my two cents :How did Kibaki manage? No devolution no multiple institutions to gooble up funds. Devolution in iys current formation is not viable nor sustainable not to mention other constitutional offices. Sehemu ndio nyumba
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Mainat wrote:Bulsit-additional cost of devolution should minimal if there wasn't two parallel governments all the to watuka i.e. village.
2ndly-why increase the number of MPs as when you have MCAs? Why? Rahatupu wrote:my two cents :How did Kibaki manage? No devolution no multiple institutions to gooble up funds. Devolution in iys current formation is not viable nor sustainable not to mention other constitutional offices. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Elder Joined: 12/27/2012 Posts: 2,256 Location: Bandalungwa
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Rahatupu wrote:my two cents :How did Kibaki manage? No devolution no multiple institutions to gooble up funds. Devolution in iys current formation is not viable nor sustainable not to mention other constitutional offices. Under Kibaki is when Kenya started to run huge deficits. kenya's budget deficit went from around Ksh 21 billion in 2002 to around 77 billion in 2012. Almost everything was paid for by borrowing. And Kenya's credit rating was poor which means interest rates are high. Which means a very high proportion of GDP goes towards servicing debts. And I dont have to tell you that such huge debts are not good for the economy either.
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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Mainat wrote:Bulsit-additional cost of devolution should minimal if there wasn't two parallel governments all the to watuka i.e. village. 2ndly-why increase the number of MPs as when you have MCAs? Why? Rahatupu wrote:my two cents :How did Kibaki manage? No devolution no multiple institutions to gooble up funds. Devolution in iys current formation is not viable nor sustainable not to mention other constitutional offices. Thirdly, did we really have to retain the provincial administration, intact as it was and still is? Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 2/27/2007 Posts: 2,768
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I saw the hustler on Citizen TV starring in the "The Big Question Show" and the statistics that I heard him mention were simply amazing. Why? First and foremost, hustler visits wazua or at least his script writer reads wazua..no doubt!!! Secondly, he told us, the viewers, that currently, the recurrent expenditure is gobbling up some 88% of the total annual revenue collection and only 12% is available for development!!! Here, I must say the country is in the RED!!! He agrees that there has been alot of funds wastage in his government (but shied away from the 100m hustler jet lease scandal), and I am going to tell him to view this and take action: A classic example of government funds wastage!!!...besides, the presence of a safe alone does not signify that there is money inside...
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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Trust Gado to tell it like it is:  Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Funny the way PORK was breathing fire on Monday about wage bill and other expenses and following day he has a large entourage in Ethiopia enjoying himself. Talk talk and more talk. Hard times ahead i tell you. Sneak preview of budget 2014 would be an interesting read. In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Veteran Joined: 2/3/2012 Posts: 1,317
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Uni staff workers on strike today asking for more.
ION doctors in Coast and Embu are quitting their jobs.
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Rank: Veteran Joined: 2/10/2010 Posts: 1,001 Location: River Road
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The bean counters should take heed:You cannot shrink into prosperity If you asked me to comment on the difference between the economic strategies of former presidents Moi and Kibaki, I would say the following: First, economic management under Moi, especially towards the end of his rule, was carried out by an elite who approached strategy with the mentality of accountants. http://www.nation.co.ke/...2/-/y7wrsoz/-/index.html
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