President William Ruto has announced that the National Government will cut the public sector wage bill by 35 percent by 2028 in line with the Public Finance Management (PFM) Act 2012.

Speaking during the 10th Ordinary Session of the National and County Governments Coordinating Summit in Nairobi, Ruto asked the county government to align.

To further the realization of the ambitious target, the national government offered to convene a Wage Bill Conference to rally efforts towards reducing wage bill expenditure.

“That Salaries and Renumeration Committee (SRC) jointly with Intergovernmental Relations Technical Committee (IGRTC) and Council of Governors (COG) shall convene the Wage bill conference,” read the communique.

To ensure the effective and efficient use of limited resources, the PFM Act aims to ensure that public finances are managed at both the federal and local levels of government in accordance with the principles outlined in the Constitution.

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The Act ensures that public servants entrusted with managing funds will answer to the people via County Assemblies and Parliament over the funds' management.

The Intergovernmental Summit also adopted a resolution extending Managed Equipment Service (MES) contracts through March 2024.

The national government offered up to 30 percent of funding for counties acquiring their own health equipment on condition that they meet transparency requirements.