National Treasury Cabinet Secretary John Mbadi has raised concerns over Kenya’s high cost of governance, warning that the country is running an unsustainable system.
Speaking on Citizen TV, Mbadi revealed that salaries in the national government alone consume approximately Sh960 billion annually, a figure projected to surpass Sh1 trillion soon. Additionally, he pointed out that Kenya is servicing loans amounting to Sh1.1 trillion per year, all against a revenue collection of around Sh2.5 trillion.
“We have a very expensive government. Today, we are paying Sh80 billion per month at the national government level for salaries. Per year it is Sh960 billion, and it’s going to hit a trillion shillings. At the same time, we are spending Sh1.1 trillion on loan repayments, so where do you get money for development? That is why sometimes our economy is sluggish,” Mbadi stated.
He attributed Kenya’s continued infrastructural and developmental progress to grants from international development partners, acknowledging that such funding has played a crucial role in sustaining projects.
“We are just lucky that somehow we have development partners who pump in some money, some in the form of grants, and they help us to grow,” he noted.
The Treasury CS emphasized the need for a national conversation on whether Kenya’s current governance structure is viable. According to him, the country must reconsider the cost implications of maintaining both the national and county governments.
“There must be a conversation. I’ve been a member of the Budget and Appropriations Committee in the National Assembly for 15 years, and I remember during the time of Mutava Musyimi, I filed a question asking for the costing of government. Former Auditor General Edward Ouko led a team that compiled a very detailed report to Parliament. How I wish we could pick that report again and Kenyans have a conversation on whether we need the kind of government we have today,” he said.
Mbadi further argued that the 47 devolved units have become financially unsustainable due to the ballooning wage bill, suggesting that the former eight-province system might have been more cost-effective.
“Forty-seven counties, each with a fully-fledged government, a governor who is basically a mini president with a deputy, and ministers many of them taking the maximum allowed are a burden. Then we have Chief Officers, more than 10, and county assemblies. This is a massive financial drain,” he explained.
Following the adoption of the 2010 Constitution, Kenya shifted to a devolved system, with power divided between the national and county governments. While counties receive funding from the National Treasury, their expenditure has increasingly raised concerns over sustainability.
Mbadi’s remarks have reignited debate on whether Kenya should rethink its governance model to curb excessive spending and ease the country’s economic burden.
