June 14, 2024

SRC rejects dubious salary increase requests amounting Ksh2.8 Billion

3 min read
SRC rejects dubious salary increase requests amounting Ksh2.8 Billion

SRC approves requests worth Ksh411 million while at the sametime rejected Ksh2.8 Billion salary increase requests

SRC approves requests worth Ksh411 million while at the sametime rejected Ksh2.8 Billion salary increase requests.

On May 25, the Salaries and Remuneration Commission (SRC) reported that it had granted approval to requests worth Ksh411 million against the 65 requests from public institutions amounting to Ksh3.2 billion

Through this intervention, SRC saved the taxpayers Ksh2.8 billion (12.7 percent of the total requests).

For the fiscal year 2022–2023, the SRC indicated in a press release that it received 65 requests from public institutions between January and March 2023.

The commission went on to say that during the three quarters of the Financial Year (FY) 2022/2023, the total cost of requests made by public institutions was Ksh5.9 billion, as compared to Ksh18.8 billion for a comparable period in FY 2021/2022. 

At the same time, SRC noted that expenditure on Personnel Emoluments (PE) in county governments remained above the Public Finance Management (PFM) threshold. 

As per the Office of Controller of Budget (OCOB), the total expenditure on PE in county governments was projected to increase from Ksh90.4 billion in the second quarter to Ksh126.02 billion in the third quarter. 

In Q3 of FY 2022/2023, the expenditure on PE in the national government was projected to be Ksh190.82 billion, up from Ksh127.21 billion in the second quarter.

SRC indicated that the wage bill to nominal Gross Domestic Product (GDP) ratio was 7.91 per cent in FY 2016/2017, rising to 8.82 per cent in FY 2019/2020. 

The ratio decreased to 8.25 per cent in FY 2020/2021 and was projected to reduce further to 7.73 per cent in FY 2021/2022.

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At the same time, SRC projected this ratio to decrease towards 7.5 per cent, in line with the average for developing countries, and approximately 7 per cent, the internationally desirable level.

“The wage bill to ordinary revenue ratio was 56 per cent in 2020/2021, and projected to reduce slightly to 51.77 per cent in FY 2021/2022,” SRC stated.

The real Gross Domestic Product (GDP) expanded by 4.8 per cent in 2022, compared to a revised growth of 7.6 per cent in 2021. 

Further, SRC noted that Kenya’s economy was expected to grow by 6.1 per cent in 2023 and to maintain that momentum over the medium term.

According to the commission, a review of the Economic Survey 2023 shows Kenya’s total workforce stood at 12 million.

Of this, 2 million constitute the formal sector, including government civil service, parastatals, and private sector employees.

Public service employees rose from 774,700 in 2015/2016 to 923,100 in FY 2020/2021. 

On average, the public service labour force grew by 4.34 per cent as of FY 2020/2021 and was projected to grow by the same rate to 963,200 employees in FY 2021/2022.

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