SRC halts salary increments for State officers amid economic pressures

The Salaries and Remuneration Commission (SRC) has announced a freeze on salary increments for all State officers, a move aimed at curbing expenditure amidst economic challenges.

Addressing the press on Wednesday, SRC Chairperson Lyn Mengich said the decision follows consultation with the National Treasury, necessary to ensure affordability and fiscal sustainability.

She also attributed this to the recent budget cuts and the ongoing conversation in the country.

“In consultation with the Treasury, SRC hereby freezes the upward review of salaries for all State officers, and will review the advice for all other public officers, taking into account the current realities of the economy, and a reduced budget to ensure affordability and fiscal sustainability of the wage bill,” she said.

She, however, noted that review for other public officers at the lower level will continue taking into account the existing contractual agreements.

Mengich clarified that recent salary adjustments were part of the planned Third Remuneration and Benefits Review cycle, scheduled for implementation over 2023-2025, following a Covid-19-induced freeze.

“It was to be implemented over two years, 2023-24 and 2024-25. This review came after a two-year freeze on pay structures for the period 2021-22 and 2022-23, on account of the impact of Covid-19 on the economy,” she said.

Regarding salary cuts as suggested by Gen Zs, Mengich explained that there is a law in place and that it cannot be arbitrarily effected. She noted that Kenya is a signatory of the International Labor Organisation (ILO) which stipulates how much can be done.

“We are not saying it cannot be done, but we can only do it after considering the law, and through consultation. In fact, we welcome such a move and we are ready to engage with them through the Parliamentary Service Commission,” she said.

The Commission emphasised that it welcomes the support from all quarters to join efforts towards the goal of achieving the 35 per cent wage-bill-to-revenue ratio.

While acknowledging that the wage bill is still high, she stated that it has come down from 54.77 per cent of revenue in 2020-21 to 46.64 per cent in 2022-23.

"The wage bill is expected to further decline to 35 per cent by 2028," she added.

This comes a few hours after President William Ruto directed the National Treasury to review the Gazette notice by SRC, increasing the salaries of state officers.

Ruto said all arms of government must live within their means, in light of the withdrawal of the Finance Bill, 2024 and the fiscal constraints expected this financial year.

Several lawmakers had also rejected the pay increase, which would see their monthly salary rise from Sh725,502 to Sh739,600.

Among the legislators who had rejected the proposal were Senate Minority Leader Stewart Madzayo, Nairobi Senator Edwin Sifuna, Kericho's Aaron Cheruiyot, Nandi’s Kiprotich Cherargei and Embakasi East MP Babu Owino, who noted that it’s wrong for the government to increase salaries while Kenyans go to bed hungry, and are jobless or running businesses are on the brink of closure.

COG notes SRC Gazette Notice No. 177 of 9/8/23 on the proposed salary increments for State Officers. In these harsh economic times, COG urges SRC to withdraw these increases for County State Officers including; Governors, DGs & CECMs to ensure fiscal discipline & sustainability pic.twitter.com/Wiq3M9m03u

— Council of Governors (@KenyaGovernors) July 3, 2024

Public Service Cabinet Secretary Moses Kuria had also declined to implement the pay increase for cabinet and principal secretaries.

He had urged the SRC to withdraw the 2023 Gazette notice, citing the need for public servants to make the same sacrifices expected of other Kenyans.