Tighten Your Belts: Kenyans To Cough Ksh480 Million To Fund New Principal Secretaries

President William Ruto’s nomination of seven new Principal Secretaries (PS) has reignited debate over the growing size of the Kenya Kwanza administration and its financial impact on taxpayers.

Critics argue that the expansion adds an unnecessary financial burden in an economy already grappling with budget deficits.

Among the newly created State Departments is the Public Investments and Assets Management under the National Treasury, headed by Cyrell Wagunda Odede.

The National Government Coordination Department, housed in the Office of the Prime Cabinet Secretary, will be led by Ahmed Abdisalan Ibrahim.

Others include the Justice, Human Rights, and Constitutional Affairs Department under the Attorney General, led by Judith Pareno, and the Science, Research, and Innovation Department within the Ministry of Education, headed by Abdulrazak Shaukut.

The Ministry of Roads and Transport has gained a State Department for Aviation and Aerospace Development, led by Teresiah Mbaika. Meanwhile, the State Department for Special Programmes (Public Service) and the Children Welfare Services Department (Labour and Social Protection) will be overseen by Ismael Madey and Carren Ageng’o Achieng, respectively.

How Much Money Will Kenyans Pay To Run State Departments?

1. Salaries

Each PS earns a monthly salary of Ksh. 792,519, which translates to Ksh. 9.51 million annually. For all 51 PSs, the total salary cost is estimated at Ksh. 485 million per year.

2. Allowances

PSs in key ministries such as Treasury and Interior receive a responsibility allowance of Ksh. 100,000 per month. Assuming 10 PSs qualify, this adds up to Ksh. 12 million annually.

3. Medical and Insurance Benefits

  • Medical Cover (Inpatient, Outpatient, Maternity, Dental, Optical): Ksh. 10M per PS
  • Total for 51 PSs: Ksh. 510M annually
  • Group Life Insurance (3x basic salary): Ksh. 117.3M annually

4. Car & Mortgage Loans

  • Car Loan (up to Ksh. 8M per PS): Ksh. 408M
  • Mortgage (up to Ksh. 35M per PS): Ksh. 1.785B

5. Retirement Benefits

PSs are entitled to a gratuity of 31% of their annual salary, totaling Ksh. 3.3M per PS. With 51 PSs, this amounts to Ksh. 168.3M annually.

Total Cost to Taxpayers

Summing up the expenses, the total estimated cost of maintaining 51 PSs stands at Ksh. 3.48 billion, considering salaries, allowances, benefits, loans, and retirement packages.