SRC halts new salary hikes, cites harsh economic realities

Salaries and Remuneration Commission Chairperson Lyn Mengich.[Edward Kiplimo, Standard]

The Salaries and Remuneration Commission (SRC) has suspended plans to increase salaries for State officers, citing economic realities and budget constraints.

SRC Chairperson Lyn Mengich, in a statement on Wednesday, July 3, said the decision was meant to ensure fiscal sustainability.

"Therefore, in consultation with the National 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," said Mengich.

"The SRC remains committed to managing public expenditure, especially concerning wages, as this decision aligns with our mandate to uphold affordability and fiscal responsibility."

A Gazette Notice dated August 9, 2023, from the SRC stated that state officers were scheduled to receive salary and benefit increments starting July 1, 2024.

In the review, Cabinet Secretaries and Members of Parliament and Judges are among state officials who were set to highly benefit.

 Speakers of both the National Assembly and the Senate, for instance, were set to receive Sh1,208,362 up from Sh1,85,327.

 Governors pay was also to be adjusted from Sh957,000 to Sh990,000.

Mengich’s statement comes after President William Ruto directed the National Treasury to review the Aught 9 notice by the commission recommending salary and benefit increments

In a Wednesday statement, the president stressed the need for all arms of government to live within their means.

"The President has directed the National Treasury to review the Gazette Notice dated August 9, 2023, from the Salaries and Remuneration Commission (SRC) regarding the remuneration and benefits for State officers, in light of the withdrawal of the Finance Bill 2024 and the fiscal constraints expected this financial year," read a statement by State House Spokesperson Hussein Mohammed.

Earlier, Public Service Cabinet Secretary Moses Kuria declined to implement the proposed salary increments, citing an inflated wage bill.

"As the Cabinet Secretary responsible for Public Service, Performance, and Delivery Management, I decline to implement the gazette notice on increased salaries as it 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," stated Kuria in a letter.

Kuria urged the SRC and other institutions in the public sector to refer to the resolutions made during the Third National Wage Bill Conference held on April 15-17, 2024, where wage bill reduction was discussed.

The Azimio coalition has also rejected the commission’s salary adjustments for lawmakers that were to take effect from July 1. Instead, the lawmakers have advocated reallocating the funds towards hiring Junior Secondary School (JSS) teachers, healthcare workers, and unemployed youth.

"We oppose the purported salary increments and urge redirecting these resources to critical public sectors," stated Minority Leader Opiyo Wandayi.

At the same time, the Council of Governors, led by Chairperson Anne Waiguru, voiced concerns over the severity of the economic climate and urged the SRC to withdraw proposed salary increments for County State Officers.

"We note with great concern that the country is currently facing harsh economic times that will require austerity measures and fiscal discipline and responsibility," said Waiguru.