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Stifling wage bill...what next???
Kaigangio
#1 Posted : Sunday, July 21, 2013 11:14:40 AM
Rank: Elder


Joined: 2/27/2007
Posts: 2,768
An article in todays daily Nation newspaper by Deputy President William Ruto gives a dark future on the country's economic growth/development due to the high wage bill...An extract from the article reads thus;

Quote:
...On the other hand, we can forget Vision 2030, attainment of middle-income status and double-digit economic growth if we don’t contain the wage bill.
Currently, the public sector wage bill is Sh458.7 billion, projected to reach Sh548.8 billion if suggested recommendations as well as other sub-sectoral demands are incorporated. As a percentage of the GDP, the wage bill stands at 12.2 per cent, of which 7.8 per cent represents the civil service wage, projected to rise to 14.6 per cent, with the civil service taking 9.3 per cent.

To put these figures into perspective, levels for middle-income economies average 8.5 per cent, whilst low income countries require levels of 7 per cent to unlock economic growth. Currently, Africa trends at 9.5 per cent.

To further bring the point home, the Public Finance Management Act, 2012, requires a provision of 30 per cent of the total national budget for development expenditure. Currently, recurrent budget gobbles up 74 per cent, leaving 26 per cent for development.

The proposed wage bill would push recurrent expenditure to 79 per cent. This leaves only 21 per cent for development which contravenes the law. Equally it is incompatible with the national economic development roadmap...


Bearing the above in mind, Ruto did not tell us how the government intends to prevent the disastrous effects of this wage bill or what steps it is taking to cut the payroll to a bare minimum...

The full article is in the link below:

http://www.nation.co.ke/.../-/uixluaz/-/index.html

If Deputy President reads wazua forum, which I hope he does, what would you advise him?
...besides, the presence of a safe alone does not signify that there is money inside...
Rankaz13
#2 Posted : Sunday, July 21, 2013 3:10:15 PM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
Kaigangio wrote:
An article in todays daily Nation newspaper by Deputy President William Ruto gives a dark future on the country's economic growth/development due to the high wage bill...An extract from the article reads thus;

Quote:
...On the other hand, we can forget Vision 2030, attainment of middle-income status and double-digit economic growth if we don’t contain the wage bill.
Currently, the public sector wage bill is Sh458.7 billion, projected to reach Sh548.8 billion if suggested recommendations as well as other sub-sectoral demands are incorporated. As a percentage of the GDP, the wage bill stands at 12.2 per cent, of which 7.8 per cent represents the civil service wage, projected to rise to 14.6 per cent, with the civil service taking 9.3 per cent.

To put these figures into perspective, levels for middle-income economies average 8.5 per cent, whilst low income countries require levels of 7 per cent to unlock economic growth. Currently, Africa trends at 9.5 per cent.

To further bring the point home, the Public Finance Management Act, 2012, requires a provision of 30 per cent of the total national budget for development expenditure. Currently, recurrent budget gobbles up 74 per cent, leaving 26 per cent for development.

The proposed wage bill would push recurrent expenditure to 79 per cent. This leaves only 21 per cent for development which contravenes the law. Equally it is incompatible with the national economic development roadmap...


Bearing the above in mind, Ruto did not tell us how the government intends to prevent the disastrous effects of this wage bill or what steps it is taking to cut the payroll to a bare minimum...

The full article is in the link below:

http://www.nation.co.ke/.../-/uixluaz/-/index.html

If Deputy President reads wazua forum, which I hope he does, what would you advise him?


I'd advise him to first rein in the politicians. The day it became fashionable for mpigs to dispense with all public opinion and fix their own pay, that same day it became nigh impossible to deny a pay increment to any other unlicensed employee. After all how do you justify there being no money to pay teachers or nurses but it's always there for mpigs incessant demands?

Secondly, of the 'lowly' 21% currently allocated as development expenditure, a significant portion still remains unutilized and has to be returned to treasury every financial year. This in a country with pressing socioeconomic needs where we frequently complain of lack of funds for this or the other. If I gave you Ksh. 100 today and you utilized only about half of it, on what basis then would you justify your asking me to give you Ksh.500 yet day in, day out you're unable to utilize the 100bob?

Finally, there's too much wastage in the management if our public affairs. Just a few short years ago, there was an order to freeze gov't purchase of vehicles exceeding a certain engine capacity. Look around you today and tell me if this is being implemented/enforced. At the same time, walk around many gov't compounds and tell me why we have practically new gov't vehicles being abandoned for simplistic problems such as a worn out battery, broken door lock, faulty braking system, cracked windscreen, etc. you want practical examples of this? I dare you to visit the MoPW compound in Meru, the Kangundo DMoH compound, Youth Affairs compound in a town I forget, etc. while at it, why does the gov't have to pay inflated prices for literally everything?

Ni hayo machache tu kwa sasa. Ahsante.


Life is like playing a violin solo in public and learning the instrument as one goes on.
dunkang
#3 Posted : Sunday, July 21, 2013 3:24:59 PM
Rank: Elder


Joined: 6/2/2011
Posts: 4,818
Location: -1.2107, 36.8831
They can reduce the amount by atleast 2.5% by eliminating GHOST employees in all ministries and parastatals.

How many 'GHOST' Teachers, 'GHOST' Policemen, 'GHOST' Soldiers, 'GHOST' Nurses etc are out there? How many dead/sacked employees still collect 'their' monthly salaries.
Receive with simplicity everything that happens to you.” ― Rashi

murchr
#4 Posted : Sunday, July 21, 2013 5:24:23 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
Do away with messengers, tea gals, cleaners and out source some of these services. In that they save on equipment etc.

Reduce some of these parastatals eg the boards such as Athi river services board ...tana bla bla, what do they do?

Trips abroad should have a MAX limit.

Conferences in hotels should end. These govt offices have conference rooms that should be utilized. Adopt technology by having video/tele conferencing. When these people go to places like Naivasha and Mombasa they are paid an allowance
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
jerry
#5 Posted : Sunday, July 21, 2013 5:34:42 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
dunkang wrote:
They can reduce the amount by atleast 2.5% by eliminating GHOST employees in all ministries and parastatals.

How many 'GHOST' Teachers, 'GHOST' Policemen, 'GHOST' Soldiers, 'GHOST' Nurses etc are out there? How many dead/sacked employees still collect 'their' monthly salaries.

Privatise parastatals.
The opposite of courage is not cowardice, it's conformity.
Rankaz13
#6 Posted : Sunday, July 21, 2013 5:44:41 PM
Rank: Elder


Joined: 5/21/2013
Posts: 2,841
Location: Here
jerry wrote:
dunkang wrote:
They can reduce the amount by atleast 2.5% by eliminating GHOST employees in all ministries and parastatals.

How many 'GHOST' Teachers, 'GHOST' Policemen, 'GHOST' Soldiers, 'GHOST' Nurses etc are out there? How many dead/sacked employees still collect 'their' monthly salaries.

Privatise parastatals.


IMO, some services should never be privatized e.g water, power, education.
Life is like playing a violin solo in public and learning the instrument as one goes on.
murchr
#7 Posted : Sunday, July 21, 2013 6:16:10 PM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
Is there anyone who knows if the cars that were replaced by Passats were ever sold?
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
digitek1
#8 Posted : Sunday, July 21, 2013 7:48:42 PM
Rank: Veteran


Joined: 2/3/2010
Posts: 1,797
Location: Kenya
massive retrenchment program in the cards...plus early retirements and review of retirement age to a digitally acceptable one
I may be wrong..but then I could be right
Gathige
#9 Posted : Sunday, July 21, 2013 7:56:06 PM
Rank: Elder


Joined: 3/29/2011
Posts: 2,242
To do a critical analysis of the wage bill, we need to figure out who earns what and not focus on the generalities. 346 MPs may earning more than the entire police or teaching force. That way we can cut where the excess fat is ( like the MPs pay).
"Things that matter most must never be at the mercy of things that matter least." Goethe
Lolest!
#10 Posted : Sunday, July 21, 2013 9:20:12 PM
Rank: Elder


Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
murchr wrote:
Do away with messengers, tea gals, cleaners and out source some of these services. In that they save on equipment etc.

Reduce some of these parastatals eg the boards such as Athi river services board ...tana bla bla, what do they do?

Trips abroad should have a MAX limit.

Conferences in hotels should end. These govt offices have conference rooms that should be utilized. Adopt technology by having video/tele conferencing. When these people go to places like Naivasha and Mombasa they are paid an allowance

hapo umenena. A parastatal I haveconsulted for has been of late sending their staff for out of the country trips. At any one time there's someone out for a conference, training etc.
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
Lolest!
#11 Posted : Sunday, July 21, 2013 9:24:20 PM
Rank: Elder


Joined: 3/18/2011
Posts: 12,069
Location: Kianjokoma
the east african this week claims we are paying our teachers salaries that are twice as much as those of our counterparts.
Laughing out loudly smile Applause d'oh! Sad Drool Liar Shame on you Pray
youcan'tstopusnow
#12 Posted : Sunday, July 21, 2013 11:27:50 PM
Rank: Chief


Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
MPs have published a controversial Bill seeking to change the Constitution so that they can continue setting their salaries.
The Constitution (Amendment) Bill 2013 aims to remove legislators, members of county assemblies and judicial officials from the list of State officers, removing the mandate of determining their compensation from the Salaries and Remuneration Commission (SRC).
http://www.businessdaily.../-/15ci3a3/-/index.html
GOD BLESS YOUR LIFE
the deal
#13 Posted : Monday, July 22, 2013 8:24:26 AM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
Kenyan civil servants are underpaid thats why corruption is rampant...the only solution to this is retrechments...dont expect people to take pay cuts when what theyre already getting paid is not enough...retrechments they wont do because civil service jobs are rewards to families and political allies...at the end of the day...its cheap or free PR for him....politicians waaaah! LOL!!!
murchr
#14 Posted : Monday, July 22, 2013 8:29:09 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
the deal wrote:
Kenyan civil servants are underpaid thats why corruption is rampant...the only solution to this is retrechments...dont expect people to take pay cuts when what theyre already getting paid is not enough...retrechments they wont do because civil service jobs are rewards to families and political allies...at the end of the day...its cheap or free PR for him....politicians waaaah! LOL!!!


Kenyan civil servants are better paid than their peers in this part of the sahara. And that includes teachers. And keep watching retrenchements will be happening soon.
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
the deal
#15 Posted : Monday, July 22, 2013 8:34:37 AM
Rank: Elder


Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
murchr wrote:
the deal wrote:
Kenyan civil servants are underpaid thats why corruption is rampant...the only solution to this is retrechments...dont expect people to take pay cuts when what theyre already getting paid is not enough...retrechments they wont do because civil service jobs are rewards to families and political allies...at the end of the day...its cheap or free PR for him....politicians waaaah! LOL!!!


Kenyan civil servants are better paid than their peers in this part of the sahara. And that includes teachers. And keep watching retrenchements will be happening soon.

Which part of the Sahara? Sahara can mean SA...Ghana... Gimme numbers...retrechements? Oh aint the same article saying provicial commissioners are still having jobs despite the new consititution making the redundant...why are Kenyans so gullible?
murchr
#16 Posted : Monday, July 22, 2013 8:54:19 AM
Rank: Elder


Joined: 2/26/2012
Posts: 15,980
the deal wrote:
murchr wrote:
the deal wrote:
Kenyan civil servants are underpaid thats why corruption is rampant...the only solution to this is retrechments...dont expect people to take pay cuts when what theyre already getting paid is not enough...retrechments they wont do because civil service jobs are rewards to families and political allies...at the end of the day...its cheap or free PR for him....politicians waaaah! LOL!!!


Kenyan civil servants are better paid than their peers in this part of the sahara. And that includes teachers. And keep watching retrenchements will be happening soon.

Which part of the Sahara? Sahara can mean SA...Ghana... Gimme numbers...retrechements? Oh aint the same article saying provicial commissioners are still having jobs despite the new consititution making the redundant...why are Kenyans so gullible?


I'll just tell you keep watching. Why do you think there's so much noise about the wage bill? So that we do what??? We're being prepared for matters to come.

On civil servants. Just do a google search.
In the oil Nigeria - a police constable now earns between N22,000 and N27,000 depending on his length of service. A constable in the Ghanian Police Service is earning cidi 720

Find out more about the Provincial commissioners and who gets retrenched in govt
"There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore
.
popat
#17 Posted : Monday, July 22, 2013 9:23:11 AM
Rank: Member


Joined: 12/2/2009
Posts: 299
Location: kenya
Is there anyone who knows if the cars that were replaced by Passats were ever sold?
@Murchr:Yes. They were sold last year around August but the uptake was dismal due to the high reserved prices.They may redo the auction this year again.
maka
#18 Posted : Monday, July 22, 2013 9:29:43 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
popat wrote:
Is there anyone who knows if the cars that were replaced by Passats were ever sold?
@Murchr:Yes. They were sold last year around August but the uptake was dismal due to the high reserved prices.They may redo the auction this year again.


Yes...but at what prices?there was a scandal here also a big one...and they sold them but they are buying new ones a case of musical chairs...
possunt quia posse videntur
popat
#19 Posted : Monday, July 22, 2013 9:47:37 AM
Rank: Member


Joined: 12/2/2009
Posts: 299
Location: kenya
MPs have published a controversial Bill seeking to change the Constitution so that they can continue setting their salaries.
The Constitution (Amendment) Bill 2013 aims to remove legislators, members of county assemblies and judicial officials from the list of State officers, removing the mandate of determining their compensation from the Salaries and Remuneration Commission (SRC).
http://www.businessdaily.../-/15ci3a3/-/index.html

My concern is, what can Wanjiku do on the face of this shameless display of greed by these MPigs.Are we this powerless to let these guyz have their way always?.....
jerry
#20 Posted : Monday, July 22, 2013 9:49:32 AM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
Seems as a finance minister UK had more power than he now has as a president!
The opposite of courage is not cowardice, it's conformity.
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