Sakaja on The Spot As Wage Bill Shoots By Triple To Sh17.3 Billion in 3 Years

Nairobi Governor Johnson Sakaja faces mounting pressure over what auditors describe as an unprecedented hiring spree that has seen the county’s wage bill balloon from Sh6 billion to a staggering Sh17.3 billion in just three years.

The dramatic surge represents a 188.6 percent increase in employee costs, with the county’s workforce nearly tripling from 5,777 workers in June 2022 to 16,321 by June 2024, according to a damning special audit report by Auditor-General Nancy Gathungu.

The explosive growth in staff numbers has pushed Nairobi County into dangerous financial territory, with employee compensation now consuming 55.9 percent of total revenue compared to 36.7 percent the previous year.

This far exceeds the legal limit of 35 percent set by Public Finance Management regulations, designed to ensure development projects aren’t starved of funding.

The hiring binge began almost immediately after Sakaja took office in September 2022, with staff numbers jumping to 13,355 by June 2023 in his first full financial year.

Employee costs during that period alone surged by 86.4 percent to Sh11.18 billion as the governor delivered on campaign promises to convert casual workers to permanent positions and expand the workforce.

However, the aggressive recruitment drive has come at a steep price.

The bloated wage bill now exceeds the county’s own-source revenue collections, which have averaged just Sh10.8 billion annually over the past two years.

This has left Nairobi heavily dependent on Treasury disbursements to meet basic operational costs, including paying salaries on time.

The financial strain became evident last month when county employees faced delayed August salary payments due to late Treasury disbursements.

Head of Public Service Godfrey Akumali was forced to issue a circular explaining the delays, highlighting the precarious position the county finds itself in.

More troubling are emerging concerns about ghost workers bleeding the county’s already stretched resources.

The audit revealed that 27 employees who collectively earned Sh47.552 million between June 2022 and last year failed to appear for mandatory physical verification exercises, raising red flags about their existence.

Additional irregularities include mismatched birth dates between the payroll system and official documents, potentially allowing some workers to exceed retirement age or be prematurely forced out.

Questions also persist about 1,700 employees allegedly hired illegally by the defunct Nairobi Metropolitan Services, which was prohibited from recruiting new staff.

The wage bill crisis has severely hampered the county’s ability to deliver critical services to residents, with development projects taking a backseat to salary obligations.

Healthcare, water supply, and road infrastructure have suffered as available funds are consumed by personnel costs.

County governments across Kenya have struggled with similar challenges since devolution began, but Nairobi’s situation stands out for its sheer scale and rapid deterioration.

The capital city, which should be generating substantial own-source revenue, now faces the paradox of having more money going to employee salaries than it collects from its own operations.

As calls for accountability grow louder, Governor Sakaja must navigate the delicate balance between honoring employment commitments made during his campaign and restoring the county’s financial health.

The audit findings present a stark warning that without immediate intervention, Nairobi County risks financial collapse under the weight of its own payroll.