Teachers Take 40% of Kenya’s Sh1 Trillion Public Wage Bill as New SRC Report Reveals Spending Detail

Teachers account for the largest share of Kenya’s public sector wage expenditure, taking up 40 per cent of the total government wage bill, according to a new report by the Salaries and Remuneration Commission (SRC).

The SRC Third Quarter Mishahara Newsletter for the 2025/2026 financial year shows that the Teachers Service Commission (TSC) consumes a substantial portion of the money allocated to paying public servants across the country.

According to the report, Kenya’s combined wage bill for national and county governments stood at KSh1.023 trillion as of December 2024. Out of this amount, teachers accounted for approximately 40 per cent.

The figures excluded payments to State officers, pensions and Consolidated Fund Services.

The education sector has also experienced a significant increase in salary expenditure, with wage costs rising by 24 per cent between 2020 and 2024. This growth was higher than that recorded in other categories of government spending.

The report further revealed differences in how national and county governments spend their budgets on salaries.

County governments direct approximately 47 per cent of their budgets towards employee compensation, compared to 29 per cent allocated by the national government.

Bajeti Hub Executive Director Dr Abraham Rugo questioned whether the existing 35 per cent wage expenditure limit on county revenue sufficiently accommodates the different staffing requirements across counties.

Rugo argued that counties should have room to employ workers needed to operate completed infrastructure projects, warning that rigid spending limits could affect service delivery.

He called for government wage expenditure to be evaluated based on productivity, service delivery and its contribution to national development rather than focusing exclusively on the amount spent.

Meanwhile, the SRC report indicated that Kenya’s public wage bill continues to exceed the legally recommended threshold.

Government spending on salaries accounts for approximately 40 per cent of total revenue, against the statutory ceiling of 35 per cent.

However, the situation has improved compared to 2020, when the wage bill consumed 55 per cent of government revenue.

The commission is also consulting public institutions as it prepares the Fourth Remuneration and Benefits Review Cycle, which seeks to establish a fair and financially sustainable compensation framework for public servants.

New Report Exposes Sector Taking Biggest Share of Kenya’s Salaries

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