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Stifling wage bill...what next???
Angelica _ann
#41 Posted : Tuesday, March 11, 2014 8:19:37 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
What gava needs to do is put systems in place to deal with corruption and other leakages.... they they can talk. If they were serious they would have talked ghost workers issue first in a comprehensive way with clearly documented savings and some 100 people jailed etc Salary cuts wont solve our problems. smoke screen this is....
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Rankaz13
#42 Posted : Tuesday, March 11, 2014 9:03:25 AM
Rank: Elder

Joined: 5/21/2013
Posts: 2,841
Location: Here
I found it odd that UK was telling parastatal heads not willing to take salary cuts to go to court where whatever the courts award, it'll be cheaper to pay them and hire someone else to do their job at a lower pay. I couldn't help but wonder, is it really cheaper to pay someone for a job they didn't do because we fired them?
Life is like playing a violin solo in public and learning the instrument as one goes on.
mlennyma
#43 Posted : Tuesday, March 11, 2014 9:28:07 AM
Rank: Elder

Joined: 7/21/2010
Posts: 6,194
Location: nairobi
Kenyans are among the highiest taxed,from this talk nobody will get employed despite the high numbers graduating,its the top cadre earners who drain this country and not the low earners.one mp can pay about 20 teachers so let action forcus the top fat fish.
"Don't let the fear of losing be greater than the excitement of winning."
Mainat
#44 Posted : Tuesday, March 11, 2014 9:35:53 AM
Rank: Veteran

Joined: 11/21/2006
Posts: 1,590
Wagebill "debate" is obviously linked to the Eurobond which is probably proving to be a hard sell.
I think the concentration on the wage is a diversionary tactic. There is Ksh0.5trn being spent on wages. We'll only save Ksh50bn in the unlikely scenario of everybody taking a 10% paycut.
If we were to get serious on corruption including pulling back what is abroad, I believe the savings would be higher than Ksh50bn
Sehemu ndio nyumba
josimar
#45 Posted : Tuesday, March 11, 2014 9:53:39 AM
Rank: Member

Joined: 7/6/2010
Posts: 242
My concern is that the wage bill takes 13% of GDP while the government debt takes about 46% of the GDP . Things don't look rosy ...
segemia
#46 Posted : Tuesday, March 11, 2014 10:06:26 AM
Rank: Member

Joined: 2/20/2009
Posts: 658
Kausha wrote:
It's very difficult to tell rank and file civil servants to take pay cuts in order to free up resources to develop the country. What GoK is forgetting is that the same civil service file rankers know very well the top dawgs who are accepting pay cuts at the higher ends will most probably be involved in collecting 'rent' from the increased development allocation and the 'rent' is enough to cover the entire annual gross salary of each of the top dawg. Where does that leave the rank and file civil servant with his/her measly pay? More poorer.

The solution to all this is to fix corruption in a very holistic and ruthless manner. We are operating a pure market system while at the same time allowing corruption to thrive. The two can't thrive together. At the moment there are quite a number of pricing bubbles in Kenya and Nairobi specifically because of corruption. Inflation on most items that high because a few people can afford to pay up which forces the rest of the population to pay up for the same goods because there is some demand of critical volumes thanks to corruption. A good number of those affording is thanks to corruption money. Everyone else is a bit under pressure to finance their purchase.

Instead of firing poor people, reform the entire GoK procurement, have a ministry of procurement that procures for the entire government and staff it with saints if you have to,otherwise we are chasing after our own tail and that means going nowhere almost all the time. You can't do pay cuts in an environment where corruption is widely practiced in the environment. Foregone incomes will just be replaced with aggression on the corruption side.

Ama this wage bill discussion is a smokescreen for the usual Cases because it doesn't make sense to me in it's current format.


My thoughts exactly. Why can't the government fix the corruption monster first? What is it afraid of?

End corruption and everything will fall into place rather easily, and probably they will not have to slash any salaries.
Angelica _ann
#47 Posted : Tuesday, March 11, 2014 10:11:41 AM
Rank: Elder

Joined: 12/7/2012
Posts: 11,935
segemia wrote:
Kausha wrote:
It's very difficult to tell rank and file civil servants to take pay cuts in order to free up resources to develop the country. What GoK is forgetting is that the same civil service file rankers know very well the top dawgs who are accepting pay cuts at the higher ends will most probably be involved in collecting 'rent' from the increased development allocation and the 'rent' is enough to cover the entire annual gross salary of each of the top dawg. Where does that leave the rank and file civil servant with his/her measly pay? More poorer.

The solution to all this is to fix corruption in a very holistic and ruthless manner. We are operating a pure market system while at the same time allowing corruption to thrive. The two can't thrive together. At the moment there are quite a number of pricing bubbles in Kenya and Nairobi specifically because of corruption. Inflation on most items that high because a few people can afford to pay up which forces the rest of the population to pay up for the same goods because there is some demand of critical volumes thanks to corruption. A good number of those affording is thanks to corruption money. Everyone else is a bit under pressure to finance their purchase.

Instead of firing poor people, reform the entire GoK procurement, have a ministry of procurement that procures for the entire government and staff it with saints if you have to,otherwise we are chasing after our own tail and that means going nowhere almost all the time. You can't do pay cuts in an environment where corruption is widely practiced in the environment. Foregone incomes will just be replaced with aggression on the corruption side.

Ama this wage bill discussion is a smokescreen for the usual Cases because it doesn't make sense to me in it's current format.


My thoughts exactly. Why can't the government fix the corruption monster first? What is it afraid of?

End corruption and everything will fall into place rather easily, and probably they will not have to slash any salaries.

The boys have realised that corruption in gava is entrenched to the CORE! Cant Move, Wont Move!
In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
Kaigangio
#48 Posted : Tuesday, March 11, 2014 10:22:44 AM
Rank: Elder

Joined: 2/27/2007
Posts: 2,768
Angelica _ann wrote:
segemia wrote:
Kausha wrote:
It's very difficult to tell rank and file civil servants to take pay cuts in order to free up resources to develop the country. What GoK is forgetting is that the same civil service file rankers know very well the top dawgs who are accepting pay cuts at the higher ends will most probably be involved in collecting 'rent' from the increased development allocation and the 'rent' is enough to cover the entire annual gross salary of each of the top dawg. Where does that leave the rank and file civil servant with his/her measly pay? More poorer.

The solution to all this is to fix corruption in a very holistic and ruthless manner. We are operating a pure market system while at the same time allowing corruption to thrive. The two can't thrive together. At the moment there are quite a number of pricing bubbles in Kenya and Nairobi specifically because of corruption. Inflation on most items that high because a few people can afford to pay up which forces the rest of the population to pay up for the same goods because there is some demand of critical volumes thanks to corruption. A good number of those affording is thanks to corruption money. Everyone else is a bit under pressure to finance their purchase.

Instead of firing poor people, reform the entire GoK procurement, have a ministry of procurement that procures for the entire government and staff it with saints if you have to,otherwise we are chasing after our own tail and that means going nowhere almost all the time. You can't do pay cuts in an environment where corruption is widely practiced in the environment. Foregone incomes will just be replaced with aggression on the corruption side.

Ama this wage bill discussion is a smokescreen for the usual Cases because it doesn't make sense to me in it's current format.


My thoughts exactly. Why can't the government fix the corruption monster first? What is it afraid of?

End corruption and everything will fall into place rather easily, and probably they will not have to slash any salaries.

The boys have realised that corruption in gava is entrenched to the CORE! Cant Move, Wont Move!


The miraculous "Michuki Word" is enough to scuttle the corruption barons out of town.

Unless, of course, you are saying Uhuru and Ruto are totally entangled in the vice to the extent that they are unsalvageable. Which now begs for the question...what business do they have being in leadership if they cannot control this corruption menace...
...besides, the presence of a safe alone does not signify that there is money inside...
dunkang
#49 Posted : Tuesday, March 11, 2014 10:38:20 AM
Rank: Elder

Joined: 6/2/2011
Posts: 4,824
Location: -1.2107, 36.8831
josimar wrote:
My concern is that the wage bill takes 13% of GDP. Things don't look rosy ...

Its very worrying.

Yesterday i was trying to look for this type of statistics worldwide, but i could not find reliable ones except for South Africa (12.1% of GDP) and Russia (3.4% of GDP). Most of Asia (except middle east) was less than 4.5%.

Its just saddening, very very saddening.
Receive with simplicity everything that happens to you.” ― Rashi

hisah
#50 Posted : Tuesday, March 11, 2014 10:59:10 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Mainat wrote:
Wagebill "debate" is obviously linked to the Eurobond which is probably proving to be a hard sell.
I think the concentration on the wage is a diversionary tactic. There is Ksh0.5trn being spent on wages. We'll only save Ksh50bn in the unlikely scenario of everybody taking a 10% paycut.
If we were to get serious on corruption including pulling back what is abroad, I believe the savings would be higher than Ksh50bn

Exactly. Thus the back and forth about the float date... Budget will come and go and this bond will still be a discussion...

All the best to KES and NSE while the US 10yr rate threatens to break above 3%...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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