Kuwait to reprice public services, eyes 500 mln dinars in revenues
the Kuwaiti government is moving forward with plans to reprice public services, a step expected to generate nearly 500 million dinars in new annual revenue for the state treasury.
This initiative, according to Al-Rai daily, led by the Ministry of Finance, forms part of a broader strategy to align service fees with actual costs and improve the financial sustainability of public sector offerings.
According to preliminary assessments, the repricing framework will rely on two main pillars:
- Cost-based pricing – where service fees reflect the actual costs incurred by the providing agency.
- Value-based pricing – where services are priced in proportion to their quality, relevance, and importance.
Each government entity will be required to review its existing fee structure, particularly for services priced significantly below cost and unchanged for years despite evolving economic conditions. Agencies will then submit updated pricing proposals that ensure fees are more accurately aligned with real costs.
The second tier of the strategy targets services currently priced at or slightly above cost but not reflective of their true value or complexity. These will be evaluated for potential upward adjustments based on service quality within a clear strategic framework.
This repricing initiative is part of Kuwait’s ongoing efforts to improve fiscal efficiency and rationalize public spending without compromising service delivery.
