Effect Of Public Sector Wage Bill On Public Investment And Fiscal Deficit In Kenya

ABSTRACT Public sector wage bill has been growing rapidly in Kenya. The wage bill as a proportion of recurrent expenditure averaged 63 per cent per year between 1993 and 2005 and 56 percent between 2006 and 2017. In addition, public sector wage bill as a percent of gross domestic product has been high averaging 11 per cent between 2006 and 2017. This is compared to seven per cent international benchmark and Kenya government’s target of eight per cent by 2017 and six per cent by 2020. The government has over time attempted to reduce public sector wage bill as a mechanism for promoting investme…