Most county governments are still spending too much of their revenue on salaries, with 41 out of the 47 counties exceeding the 35 per cent wage-bill limit set for public spending.
The latest figures from the Salaries and Remuneration Commission (SRC) show that only six counties had managed to keep their personnel costs below the required level, pointing to the continued strain payroll expenses are placing on devolved governments.
Nyandarua, Nakuru, Migori, Kilifi, Siaya and Tana River were the only counties that remained within the 35 per cent wage-bill-to-revenue threshold during the nine months of 2025.
The findings are contained in the SRC Second Quarter Wage Bill Bulletin for the 2025/2026 financial year, covering the period between October and December 2025.
The report shows that county governments continue to direct a large part of their available revenue towards paying workers, leaving them with less money for other government activities.
County spending on Personnel Emoluments stood at a projected Sh71.87 billion in the second quarter of the 2025/2026 financial year.
This was an increase from the Sh63.63 billion recorded during the same quarter of the previous financial year.
However, the rise in the amount spent on salaries was accompanied by a fall in the share of county revenue going towards personnel costs.
Personnel Emoluments accounted for 40.12 per cent of county revenue in the period under review, compared with 43.34 per cent in the corresponding period of the previous financial year.
Despite the improvement, the figure remained above the 35 per cent mark, with the majority of counties still outside the required range.
The six counties that met the target show that some devolved governments have managed to keep their payroll costs within the set limit.
The county figures stand in contrast to those recorded by the national government.
The national government spent an estimated Sh166.98 billion on Personnel Emoluments in the second quarter of the 2025/2026 financial year, compared with Sh153.71 billion during the same period a year earlier.
Even with the increase, national government personnel costs accounted for 28.56 per cent of ordinary revenue.
This placed the national government below the 35 per cent wage-bill threshold, unlike the majority of counties.
The difference highlights the heavier pressure facing county governments when their salary costs are measured against the revenue available to them.
The SRC bulletin also gives a broader picture of employment in the public service and how it affects the wage bill.
The number of public servants increased from 992,900 in 2023 to 1.023 million in 2024, representing a 3.1 per cent rise.
The Teachers Service Commission remained the largest public employer, with 410,700 employees.
Ministries and other extra-budgetary institutions followed with 236,700 employees, while county governments had 226,500 workers.
But the SRC data shows that having more employees does not always mean having the biggest wage bill.
Parastatal bodies employed 100,100 people in 2024 but recorded a wage bill of Sh239.02 billion.
County governments, on the other hand, had 226,500 employees but their wage bill stood at Sh215.08 billion.
The commission says the difference shows that the number of workers is only one factor affecting the public wage bill.
SRC says the comparison demonstrates that, while employee numbers influence the wage bill, “the level of remuneration (the quantum per employee) is an equally significant determinant.”
This means that efforts to bring down payroll costs may need to look beyond the number of people employed and also consider how much individual workers are paid.
The commission has also identified productivity as an important part of efforts to deal with the wage bill.
In the second quarter, SRC brought together a steering committee to assess the implementation of resolutions reached during the Third National Wage Bill Conference.
The committee identified labour productivity as a key strategy for helping the country reach the 35 per cent wage-bill-to-revenue target.
It further agreed to convene the First National Productivity Conference during the 2025/2026 financial year.
The push for better productivity comes against a public wage bill that is largely driven by sectors providing essential services.
Education accounted for 59.66 per cent of the wage bill across the Medium-Term Expenditure Framework sectors in the 2024/2025 financial year.
Governance, justice, law and order accounted for 26.23 per cent, while health made up 2.27 per cent.
The SRC lists education, health, security and uniformed services among the areas that contribute heavily to the public wage bill.
For county governments, the figures point to the challenge of keeping salary spending under control while maintaining the workers needed to provide services to residents.
The latest data shows that reducing the share of revenue used for wages remains a major task for devolved units, with 41 counties yet to fall within the 35 per cent limit.
At the same time, the rise in total personnel spending shows that the amount counties are paying workers continues to grow, even as the share of revenue used for salaries has improved.
The SRC’s focus on productivity therefore adds another layer to the efforts to manage the wage bill, alongside the need to keep staffing and employee pay within levels that county revenues can support.