SRC Bows to Pressure, Halts Salary Increases for State Officers Amid Fiscal Constraints
The Salaries and Remuneration Commission has succumbed to public demand and decided to halt salary hikes for all State officers.
Lyn Mengich, the chairperson of SRC, mentioned that this decision came after consultations.
She stated that the salary review was conducted by Section 11 (e) of the SRC Act.
Any salary adjustments must consider economic conditions, contractual agreements, and budget availability, she added.
Ms. Mengich emphasized that while adjustments are not ruled out, they must comply with legal requirements.
Previously, President William Ruto instructed the National Treasury to revisit a gazette notice that had raised salaries for Cabinet Secretaries, members of parliament, governors, members of county assemblies, and other top State offices effective from July 1, 2023.
President Ruto called for the suspension of gazette notice No. 10346 dated August 9, 2023, issued by the SRC, following the withdrawal of the Finance Bill, 2024, and expected fiscal constraints this financial year.
The SRC had earlier reviewed and set the remuneration and benefits for State Officers in the National Government’s Executive under the Third Remuneration and Benefits Review Cycle, covering financial years 2021/2022–2024/2025.
The new monthly remuneration structure for State Officers in the National Government’s Executive was slated for implementation in the financial year 2024/2025, starting July 1, 2024.
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State House spokesman Hussein Mohamed posted on X (formerly Twitter) that President William Ruto directed the National Treasury to review the Gazette Notice from August 9, 2023, regarding State officers’ remuneration and benefits due to the withdrawal of the Finance Bill, 2024, and anticipated fiscal challenges.
The President stressed that all government arms need to adhere to their financial limits now more than ever.
Public Service Cabinet Secretary Moses Kuria had earlier requested the SRC to revoke the implementation of the new salary structure.
He referred to the resolutions from the Third National Wage Bill Conference held on April 15-17, 2024, aiming to reduce the wage bill to 35% of revenue as stipulated by the Public Finance Management Act, 2012, and the current austerity measures announced by the President due to the Finance Bill 2024’s withdrawal.
As the Public Service, Performance, and Delivery Management Cabinet Secretary, Kuria refused to implement the gazette notice on increased salaries for the Executive arm of the National Government and urged the Commission to revoke the new salary structure implementation across all government levels.
Calculations indicated that the Treasury would need at least Sh10.92 billion annually for the new salaries and allowances, putting additional strain on the already economically challenged Exchequer, which currently spends Sh9.85 billion annually on salaries and allowances for top officers.
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The SRC’s gazette notice indicated that salaries for Prime Cabinet Secretary Musalia Mudavadi, the 22 Cabinet Secretaries, Attorney General Justin Muturi, Head of Public Service Felix Koskei, and Secretary to the Cabinet Mercy Wanjau would increase to Sh990,000 from Sh957,000.
MPs and Senators, currently earning Sh725,502, would see their pay rise to Sh739,600 monthly.
Governors’ pay would increase from Sh957,000 to Sh990,000, and MCAs would get a raise from Sh154,481 to Sh164,588 monthly.
These new salary bands would require at least Sh744.83 million monthly for salaries alone, excluding allowances that vary with travel and engagements.
Compared to current compensation terms, the Treasury would need an additional Sh30 million monthly or Sh360 million annually to cover the new salaries.
SRC chairperson Lyn Mengich noted that implementing the proposed salary raises depends on the availability of funds and fiscal sustainability.
The salary increases come at a time when President William Ruto faces a public outcry to cut wasteful spending and reduce the tax burden on citizens.
In response to the anti-tax protests and accusations of wasteful spending, President Ruto mandated austerity measures to cut non-essential expenditures, including travel, hospitality, and motor vehicle purchases, to address a Sh346 billion deficit caused by the abandoned Finance Bill 2024.
Under the new salary structure, the pay for the Speaker of the National Assembly and the Senate will rise from Sh1,185,327 to Sh1,208,362, and the Deputy Speakers’ pay will increase from Sh948,261 to Sh966,690.
Leaders of the Majority and Minority Parties in both Houses will earn Sh800,019, while Members of the National Assembly and Senate will receive Sh739,600 monthly. Currently, Majority/Minority leaders earn Sh784,768, and MPs earn Sh725,502.
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In addition to their salaries, MPs and Senators receive Committee Sitting Allowance, with chairpersons earning Sh15,000 per sitting up to Sh240,000 per month. Vice-chairpersons earn Sh12,000 per sitting up to Sh192,000 per month, while members earn Sh7,500 per sitting up to Sh120,000 per month.
The salaries of the 51 Principal Secretaries, the Inspector General of Police, and the Director of the National Intelligence Service will increase from Sh792,519 to Sh819,844.
The new salary for the Deputy Inspector-General, Kenya Police Service, Deputy Inspector-General, Administration, and Director of Criminal Investigations will rise from Sh652,742 to Sh684,233.
At the county government level, the salaries of County Governors will increase from Sh957,000 to Sh990,000, and Deputy County Governors will see their pay rise from Sh652,742 to Sh684,233.
Members of the Executive Committee (CEC) will have their salaries increased from Sh413,079 to Sh422,526, while the Speaker of the County Assembly’s pay will rise from Sh537,003 to Sh549,283.
Deputy Speakers will earn Sh247,943, up from Sh231,722, and Leaders of the Majority/Minority Party, currently earning Sh191,324, will see their pay rise to Sh204,717.
Members of the County Assembly (MCAs) currently earning Sh154,481 will now earn Sh164,588 monthly.
Under the Third Remuneration and Benefits Review Cycle covering Financial Years 2021/2022-2024/2025, State Officers in Full-Time Constitutional Commissions and Independent Offices will see increases in their remuneration and benefits.
The Auditor-General and chairperson of the IEBC will see their salaries increase from Sh957,000 to Sh990,000.
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The Controller of Budget and the vice chairperson of the IEBC, earning similar salaries, will see their pay rise from Sh792,519 to Sh819,844.
Chairpersons of the Kenya National Commission on Human Rights (KNCHR), National Land Commission (NLC), Commission on Revenue Allocation (CRA), Public Service Commission (PSC), Salaries and Remuneration Commission (SRC), Teachers Service Commission (TSC), National Police Service Commission (NPSC), Commission on Administrative Justice (CAJ), and National Gender and Equality Commission (NGEC) will have their salaries increase from Sh792,515 to Sh819,844.
The salaries of the two non-MPs serving in the Parliamentary Service Commission (PSC) will rise to Sh698,600 from Sh674,000.
The Director of Public Prosecutions and members of the IEBC will also see their pay increase from Sh792,519 to Sh819,844.
Vice-chairpersons and members of the IEBC, KNCHR, NLC, CRA, PSC, SRC, TSC, NPSC, CAJ, and NGEC will see their salaries rise from Sh674,000 to Sh698,600.
Commission Secretary/CEOs in the EACC, CRA, PSC, TSC, IEBC, and NPSC will have their salaries increase from Sh674,000 to Sh698,600.
Commission Secretary/CEOs in other Commissions designated as State Officers under Article 260 of the Constitution will see their salaries rise to Sh684,233.
The Data Protection Commissioner’s salary will increase from Sh642,125 to Sh674,900.
Salaries for the EACC chairperson, vice-chairperson, and members will remain at Sh365,000, Sh310,000, and Sh290,000 respectively, as the EACC is among Part-Time Constitutional Commissions.
SRC Bows to Pressure, Halts Salary Increases for State Officers Amid Fiscal Constraints