Uhuru, Ruto pay cut was effected in April, says PSC

Official pay cut for President Uhuru Kenyatta and his deputy William Ruto was effected in April this year.

Public Service Commission (PSC) chair Margaret Kobia (pictured) also confirmed that the pay cut for Cabinet Secretaries (CSs) and their Principal Secretaries (PSs) was implemented at the same time.

In March, President Kenyatta gave a directive asking top public officers to take a pay cut. Prof Kobia says Uhuru and his deputy had authorised in writing their deductions paving way for the commission to kickstart the reductions.
“Pay cut of 10 per cent for CSs and PSs were effected in April. Each gave written instructions for the deduction,” Prof Kobia said.

Cancer of corruption

“The president and his deputy were the first to authorise deductions,” she added.

“A few CEOs of State corporations have authorised 10 per cent deductions...the deduction is being done through the payroll check off system,” Kobia said.

The Salaries and Remuneration Commission (SRC) confirmed the move.

“We are aware some of them took voluntary cuts but pay cuts for other officers like parastatal CEOs, will be effected by their employer. This is to ensure the employment Act is adhered to,” said SRC Communications Director Ali Chege.

PSC and Judicial Service Commission (JSC) have also been challenged to reduce salaries of senior and mid-level civil servants.
The President’s decision to take a pay cut was informed by the bloated public wage bill that is at 13 per cent up from seven per cent and could even rise to a whopping 15 per cent if not properly managed.
The decision by the top executives to take a pay cut was effected even as it emerged there is still rampant loss of taxpayers’ money through corruption channels.

Transparency

Ethics and Anti-corruption Commission (EACC) says out of the Sh1.8 trillion budgeted for the 2014/15 fiscal year, 30 per cent will be lost to either misuse or corruption.
“We lose 30 per cent of the budget to corruption annually. Some of this goes to misappropriation,” EACC spokesperson Yassin Aila told The Standard on Saturday.

Even with this great gesture by the Head of State, a pertinent question that arises is what about the cancer of corruption. Eric Musau, an analyst at the Standard Investment Bank concurs that corruption is still a major hurdle in the management of the wage bill and needs to be addressed more transparent government procedures.

“Corruption is separate and needs to be tackled through more transparent procurement processes that ensure government gets value for money. Key challenge of late has been delays on projects,” he added.

Government tenders worth Sh460 billion have been embroiled in controversy, with questions arising on procedures followed in awarding them.

They include the Sh425 billion Standard Gauge Railway, the Sh13 billion National Social Security Fund tender involving Tassia Scheme and Hazina Towers.