EFFECT OF PRODUCTIVITY LEVEL AND FISCAL SUSTAINABILITY IN KENYA’S PUBLIC SECTOR WAGE BILL MANAGEMENT INSTITUTIONS
Owuor A. E. - Management University of Africa, School of Management and Leadership, Kenya
Nyambegera S. - United States International University - Africa, Department of Human Resource Management, Kenya
Wainaina G. - University of Nairobi, School of Business, Kenya
ABSTRACT
Fiscal sustainability involves the capability of a government in the long run to meet its financial responsibility consistently and is concerned with the availability of adequate revenues for services, capital levels and demands of the public. The study examined the relationship between productivity level and fiscal sustainability in Kenya’s public sector wage bill management institutions. The study was guided by the theory of marginal productivity. The philosophical foundation adopted by the study was positivism and a cross sectional survey design owing to the fact that the data collected was quantitative and qualitative in nature. The study population was from Kenya’s public sector wage bill management institutions. In determination of sample size, the Krejcie and Morgan table was used. Primary data was collected by use of structured questionnaires and the choice of drop and pick method was used because the technique is believed to minimise non-coverage error. Data analysis involved computation of percentages, means scores, and frequencies for descriptive statistics and correlation and regression for inferential statistics. From the findings of the research, it can be concluded that Kenya’s public sector productivity level has a significant effect on fiscal sustainability. The study recommends that Kenya’s public sector needs significant changes to improve its fiscal sustainability from moderate to excellent, to address their significant challenges in service delivery; furthermore, there is a need to develop policies that are aligned to productivity and fiscal sustainability.
