SRC bows to pressure, reverses pay rise for CSs, MPs and governors

The Salaries and Remuneration Commission has bowed to public pressure and frozen salary increases for all State officers.

According to SRC chairperson Lyn Mengich, the move follows consultations.

She said the salary review was based on the salary structure as set out in Section 11 (e) of the SRC Act.

She said any adjustments have to take into account the economy, contractual agreements and budget availability.

"We are not saying it cannot be done, but we can only do it after considering the law,” Ms Mengich said.

Earlier, President William Ruto had directed the National Treasury to review a gazette notice that increased salaries for Cabinet Secretaries, members of parliament, governors, members of county assemblies, and other top State offices with effect from July 1, 2023.

Dr Ruto wanted gazette notice No. 10346 dated August 9, 2023, issued by the Salaries and Remuneration Commission (SRC), halted in the wake of the withdrawal of the Finance Bill, 2024 and fiscal constraints expected this financial year.

The SRC reviewed and set the remuneration and benefits for State Officers in the Executive of the National Government under the Third Remuneration and Benefits Review Cycle that covers financial years 2021/2022–2024/2025.

The monthly remuneration structure for State Officers in the Executive of the National Government was to be implemented in the financial year 2024/2025, with effect from  July 1, 2024.

“President William Ruto has directed the National Treasury to review Gazette Notice dated August 9, 2023, from the Salaries and Remuneration Commission (SRC) regarding remuneration and benefits for State officers in the Executive of the National Government, the Senate and the National Assembly, in light of the withdrawal of the Finance Bill, 2024 and fiscal constraints expected this financial year,” Hussein Mohamed, the State House spokesman said in a post on X (formerly Twitter).

“The President has emphasised that this is a time, more than ever before, for the Executive and all arms of government to live within their means.”

New salary structure

Earlier, Public Service Cabinet Secretary, Moses Kuria, had written to the SRC seeking degazettement of implementation of the new salary structure.

“However, I refer to the Resolutions of the Third National Wage Bill Conference held on 15-17th April 2024 to reduce the wage bill to 35 per cent of revenue as provided in the Public Finance Management Act, 2012 and the prevailing austerity measures announced by H.E the President occasioned by the withdrawal of the Finance Bill 2024,” Mr Kuria wrote.

“As the Cabinet Secretary responsible for Public Service, Performance, and Delivery Management therefore, I decline to implement the gazette notice on increased salaries as applies to the Executive arm of the National Government and urge the Commission to degazette the implementation of the new salary structure, in its entirety, across all levels of government.”

Computations showed that the Treasury will require at least Sh10.92 billion annually to handle the new salaries and allowances—piling pressure on the Exchequer, already hard hit by economic turmoil. Currently, the Treasury spends at least Sh9.85 billion annually on the salaries and allowances of the top officers.

The gazette notice by the SRC said the salaries of 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, will hit Sh990,000, each up from Sh957,000.

MPs and Senators, whose salary is Sh725,502, will have their pay increased to Sh739,600 monthly.

A governor‘s pay has been adjusted from Sh957,000 to Sh990,000, while that of an MCA will increase from Sh154,481 to Sh164,588 monthly.

Travel and engagements

Going by these new bands, it will require at least Sh744.83 million to pay monthly salaries alone, exclusive of allowances that vary based on circumstances such as travel and engagements.

Compared to the current compensation terms, it means that the Treasury will need a minimum extra Sh30 million monthly or Sh360 million annually to meet the salaries.

SRC chairperson Lyn Mengich, however, said the implementation of the proposed salary raises is subject to “availability of funds and fiscal sustainability”.

The new salary increases come at a time when President William Ruto is facing public protests to cut wasteful spending and reduce the taxation burden on ordinary citizens.

Dr Ruto, whose administration has come under pressure for wasteful spending since the anti-tax protests started, directed for implementation of austerity measures that would involve expenditure cuts affecting all levels of government.

In an address to the nation following the deadly protests spearheaded by Generation Z directed budget cuts on non-essential expenditures in his office, including travel, hospitality, and the purchase of motor vehicles to curb the wastage of funds and plug a Sh346 billion hole occasioned by the now abandoned controversial Finance Bill 2024.

Under the new salary structure, the pay for the Speaker of the National Assembly and the Senate who currently earn Sh1,185,327 will rise to Sh1,208,362 while that of the Deputy Speakers of both Houses will hit Sh966,690, up from Sh948,261.

The Leader of the Majority and Minority Parties in both Houses will take home Sh800,019 while a Member of the National Assembly/Senate will earn Sh739,600 monthly. Majority/Minority in the National Assembly and Senate currently earn Sh784,768 while MPs in both Houses take home Sh725,502.

Apart from their hefty salaries, MPs and Senators are paid Committee Sitting Allowance with chairpersons earning Sh15,000 per sitting up to a maximum of Sh240,000 per month.

Vice-chairperson earns Sh12,000 per sitting up to a maximum of Sh192,000 per month while members take home 7,500 per sitting up to a maximum of 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 now rise from Sh792,519 they earned last month to Sh819,844 at the end of this month.

Adjusted

The new salary for the Deputy Inspector-General, Kenya Police Service, Deputy Inspector-General, Administration, and Director of Criminal Investigations will be Sh684,233 up from the current Sh652,742.

At the devolved level of government, the salaries of the County Governor have been adjusted from Sh957,000 to Sh990,000 while that of the Deputy County Governor will rise from Sh652,742 to Sh684,233.

Members of the Executive Committee (CEC) salary will increase from Sh413,079 to Sh422,526 while that of the Speaker of the County Assembly has been adjusted from Sh537,003 to Sh549,283.

The Deputy Speaker will earn Sh247,943 up from Sh231,722, while pay for the Leader of the Majority/Minority Party who earns Sh191,324 will rise to Sh204,717.

Members of the County Assembly (MCA) who take home Sh154,481 will now pocket Sh164,588 monthly.

The remuneration and benefits for State Officers in the Full-Time Constitutional Commissions and Independent Offices under the Third Remuneration and Benefits Review Cycle that covers Financial Years 2021/2022-2024/2025 will see the Auditor-General and chairperson of IEBC salary increase from Sh957,000 to Sh990,000.

The Controller of Budget and the vice chairperson of the Independent Electoral and Boundaries Commission who earns similar monthly salaries will see their perks 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) who earned Sh792,515 will take home Sh819,844.

The two non-members of Parliament serving in the Parliamentary Service Commission (PSC) salary will rise to Sh698,600 from Sh674,000.

The Director, Public Prosecution, and member of IEBC will also earn Sh819,844 up from Sh792,519.

Vice-chairperson and members of the IEBC KNCHR NLC; CRA; PSC; SRC; TSC; NPSC; CAJ and NGEC will earn Sh698,600 up from Sh674,000.

Commission Secretary/CEOs serving in the EACC, CRA, PSC, TSC, IEBC, and NPSC who earn Sh674,000 monthly will take home Sh698,600.

Commission Secretary/CEO in all other Commissions designated as State Officers as per Article 260 of the Constitution will earn a new salary of Sh684,233.

The Data Protection Commissioner, who currently earns Sh642,125 will have the salary adjusted to Sh674,900.

The salaries of the EACC chairperson, vice chairperson, and members have been retained at Sh365,000, Sh310,000, and Sh290,000 respectively. The EACC is among Part-Time Constitutional Commissions.

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