July 3, 2024

Kenya’s wage bill to rise over KSh1 trillion after the latest salaries review

3 min read
Kenya's wage bill to rise over KSh1 trillion after the latest salaries review

The wage bill for government employees rises by two percent to Sh1.17 trillion after the Salaries and Remuneration Commission (SRC) review

The wage bill for government employees rises by two percent to Sh1.17 trillion after the Salaries and Remuneration Commission (SRC) review.

Following the most recent salary review, the total remuneration for government workers would reach Sh1.17 trillion in the current fiscal year.

After receiving input from the general public during a review in which MPs were among the top beneficiaries, the Salaries and Remuneration Commission (SRC) awarded State officers a pay hike worth Sh21.7 billion.

The review will result in a two percent increase in the pay bill, pushing it above the Sh1.17 trillion threshold.

“This pay review is about the harmonization of pay to get some sense of equity and fairness in pay. It’s not about just increasing pay. We still had to give a pay review to State Officers but we still factored in feedback. There was a pay review but not at the same rate as proposed previously,” said SRC chairperson Lyn Mengich.

Cabinet Secretaries will now earn Sh990,000 from Sh924,000 in the first year, alongside the Prime Cabinet Secretary.

The Prime Cabinet Secretary post which is currently held by Musalia Mudavadi will nevertheless enjoy additional perks of Sh150,000 per month as a special responsibility allowance.

Likewise, special responsibility allowances for the Cabinet Secretaries of the Interior, Treasury, and Foreign Affairs would increase by Sh100,000.

The cost to evaluate the wages of Executive State Officers upward during the same period is projected at Sh126.9 million, while the cost to review the salaries of Parliament State Officers is Sh78.8 million.

In general, the teaching service will get the majority of the increased compensation budget ($9.5 billion), taking precedence over county governments and uniformed and disciplined forces.

Members of Parliament will claim enhanced mileage allowances following the reinstatement of higher rates by the SRC.

On Wednesday, the SRC gazetted an improved mileage claim of Sh152.60 per kilometre for MPs, a 30.8 percent increase from the previous rate of Sh116.63.

The Commission says the increase represents a restoration of the effective mileage claim rate following the end of a protracted court process that had previously frozen the adjustment to MPs’ salaries and mileage claims.

As a result, the SRC says the adjustment will not have financial implications on the wage bill, noting the fiscal impact of the higher mileage claim had been factored in previous review cycles.

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“What we have done is to reinstate what was there before and so there are no additional cost implications,” Ms Mengich said on Wednesday.

The reinstatement is expected to give MPs some cushion against higher fuel prices with the cost of petroleum products having soared to historical highs across recent months.

All other State officers apart from the President and the Deputy President are expected to get improved compensation in the next two fiscal-year cycles in the SRC review.

The average increase of workers in the public service has been tabulated at between seven and 10 percent over the two-year period, inclusive of a three percent automatic lift annually.

Civil servants at the national and county governments, the teaching service, and public universities qualify for the pay rise.

Workers in State corporations and secretariat staff in commissions and independent offices will however miss out on the salary increases given their already high average salaries.

Pay rises to unionized staff will however not be automatic and will require the renegotiation of collective bargaining agreements.

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