Sign in Subscribe
Workers

Nairobi Residents Face Worsening Disruption of Services Amid Stagnant Salary Payments

Strategic Insights

— 1 min read

Nairobi residents should expect a worsening disruption of essential services due to sustained salary delays faced by county workers. The situation is exacerbated by a massive payroll expansion that has strained the county's ability to meet its wage obligations. The county's devolved unit has seen its wage bill reach an unprecedented Sh17 billion due to an unchecked hiring spree over the last three years. The workers' union has called on them not to show up at work and to deliver minimal services if they do attend.

Key Takeaways:

  • The number of City Hall employees surged from 5,777 in June 2022 to 16,321 by June 2024, nearly tripling in just two years.
  • The wage bill ballooned by 188.6 per cent over the same period, rising from Sh6 billion to Sh17.3 billion annually.
  • The sharpest increase came in the 2022/2023 financial year, when staff levels more than doubled and payroll costs jumped to Sh11.18 billion.
  • Salaries consumed 55.9 per cent of Nairobi's total revenue by June 2024, exceeding the 35 per cent limit set by the Public Finance Management (County Governments) Regulations, 2015.
  • Prolonged salary delays have resulted in workers slowing down services or remaining at home until their dues are paid.
  • The Kenya County Government Workers Union instructed county employees to slow down services or remain at home until their dues are paid.
  • Many workers have been unable to report to duty due to financial constraints.

Statistics:

  • 55.9 per cent: the share of Nairobi's total revenue consumed by salaries by June 2024.
  • 188.6 per cent: the increase in wage bill over the last two years.
  • 86.4 per cent: the increase in payroll costs in 2022/2023 financial year.
  • 5,777: the number of City Hall employees in June 2022.
  • 16,321: the number of City Hall employees by June 2024.
  • Sh17 billion: the devolved unit's wage bill.
  • Sh6 billion: the original wage bill in 2022.
  • Sh17.3 billion: the current wage bill annually.
  • Sh11.18 billion: the payroll costs in 2022/2023 financial year.

Sources:

  • Auditor General's special audit report.
  • Kenya County Government Workers Union letter to Governor Johnson Sakaja.
  • County circular dated September 9.
  • Public Finance Management (County Governments) Regulations, 2015.
  • Kenyan news outlet.

Read more