Wednesday 26 March 2014

My Take on the Wage Bill-Nimrod Muyale



Analysing the recurrent expenditure..one is bound to realize we do about 1trillion..or just about how much KRA will collect. The 0.6 trillion for development is from loans domestic (tbill/tbonds)+ foreign (China+IDB+EDB)--90%,foreign AID and grants (about 100B--70B in AID).
Now zeroing on recurrent expenditure..about 30%..or 300B is NON- discretionary spending in Consolidated Fund...that we use to pay Loan interest +pension and others (like UN subscription).
The elephant in the house is discretionary spending... salaries and gov supplies.... 600-700B. TSC takes 150B. Free Primary education and subsidized secondary
takes 40B. Higher education (lecturers/student grants) takes 50B.
So 250B..or nearly 40% of the money goes to education. The next big spender is KDF at 70B
annually. The AP/Police/ takes in 60B. So security takes 150B. The next big spender is Drugs/Doctors/Nurses....who combined takes home 60B or about. Those are the elephant in
the house... nearly 500B is locked up in 3 sectors..education...security and health...the rest of ministries,agencies,commission and parastals share 150-200B. For example
Parliament takes 15B..Judiciary about the same...each about 2% of recurrent= expenditure. Bottomline; You want to cut expenditure..reduce spending in education....reduce free primary and
subsidized secondary education. Remove corruption from KDF..no way KDF can outspend Police/AP/Prov Administration. KDF and Education sector are weighing down kenya. KDF is top 4 spender in Africa..and i think no 17 in world..and they have laughable hardware. Audit those 70B.. no way 20-30K soldiers can spend that much. Remove some of investment in education...let the parent chip in primary schools and secondary school once