Political leaders reject SRC salary increase to avert public outrage

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

President William Ruto, his Cabinet Secretary for Public Service and Delivery Management Moses Kuria as well as Members of Parliament were yesterday competing to reject a new salary hike by Salary and Remuneration Commission(SRC).

The government and the opposition lawmakers as well as senior government functionaries went on overdrive to reject the salary increment complaining of being set up even as outraged members of the public blasted the government for being insensitive to the plight of the taxpayers

The implementation of the SRC’s gazette notice dated August 9 last year was taking effect this month, coinciding with violent protests across the country which have forced President William Ruto to reject the Finance Bill 2024.

However, the SRC took an about turn and freezed the upward review of salaries. During a press briefing on Wednesday, the commission’s chairperson Lyn Mengich said the decision was necessitated by the ‘realities’ of the economy and emerging fiscal constraints.

“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,” she said.

Mengich added: “SRC has been conscious of the need to ensure prudent fiscal sustainability of the public wage bill and has consistently taken measures towards ensuring that public service operates within the prescribed affordability limits.”

However, SRC clarified that the pay hike was not a new proposal as the communication was officially made on August 9, 2023, vide a gazette notice.

She said the review was as a result of a two-year freeze on pay structures for the period 2021/2022 and 2022/2023 on account of the effects of Covid-19 on the country’s economy.

After withdrawing the Finance Bill, the President announced austerity measures to reduce expenditure by Sh346 billion to be borne by the executive, the legislature, the judiciary, and constitutional commissions. He further instructed the National Treasury to direct all accounting officers to ensure that only critical and essential services are funded, using no more than 15 per cent of the budget, until the supplementary budget is approved.

But the SRC’s salary hike came a few days after the President’s ‘austerity plans’ which would spark criticism and outrage from the members of the public.

Yesterday, State House Spokesperson Hussein Mohamed said the National Treasury had been directed to review the SRC’s Gazette Notice in light of the withdrawal of the Finance Bill 2024 and the fiscal constraints expected this financial year.

“The president has emphasized that this is a time, more than ever before, for the Executive and all arms of government to live within their means,” said Mohamed on his X platform

While Mohamed was communicating the president’s decision, Kuria was busy drafting a letter which he later sent to media houses urging the Commission to de-gazette the implementation of the new salary structure in its entirety, across all levels of Government.

He said it was not sustainable to have 900,000 public servants from both levels of Government consume Sh1.1 trillion annually, which he claimed was equivalent to 47 per cent of national revenues, leaving the remainder of 54 million Kenyans to survive the remaining revenue which is also supposed to cover the country’s debt.

“The PFM Act, 2012 provides that Kenya’s public Wage bill should not exceed 35 per cent of the national budget. Our current trajectory indicates a continual rise in expenditure on salaries, allowances, and benefits for public servants, placing immense strain on our national finances. This is not a challenge we can afford to ignore. Reducing the public wage bill requires a multifaceted approach, one that balances fiscal prudence with a commitment to fair compensation for our public servants,” Kuria said in the letter.

MPs, who have largely lied low over the range of Generation Z protestors, also joined hands to oppose the salary hikes by SRC with some claiming the move appeared like a set-up to aggravate the situation, especially between them and their supporters.

Embakasi East MP Babu Owino said MPs and other state officers should not be added even a coin.

“It’s sad to increase salaries while Kenyans have no jobs, Kenyans have no capital to start businesses, no money to pay fees and no money for medication,” the MP said.

Aldai MP Marianne Kitany said if anything, the discussion should be on salary reduction. “We must focus on reducing unnecessary expenditures and concentrating on strategies to restore peace and strengthen our economy.”

At the same time, the Azimio la Umoja coalition through its co-Principal Kalonzo Musyoka urged its members holding leadership positions to reject the salary increments saying it would be insensitive for MPs to accept the salary increase amidst widespread public discontent.

Kalonzo criticized the government’s attempt to divert public attention from pressing issues by proposing salary increases for senior state officers amidst an economic downturn.”It is deeply concerning that at a time when our economy is struggling, there are plans to adjust the salaries of senior state officers upwards. This move is not only insensitive but also indicative of the regime’s misplaced priorities,” Kalonzo said.

On his part, National Assembly Minority leader Opiyo Wandayi said that he and his deputy had rejected the salary increments and urged the National Treasury to redirect the funds towards employing Junior Secondary School teachers and bolstering healthcare by hiring more workers. He called on his colleagues to follow their lead in rejecting the pay rise

Council of Governors (CoG) through its chairperson  joined the bandwagon saying “The CoG urges for the immediate withdrawal of salary and benefits increments by SRC in light of the withdrawn Bill.”