Gen Z push forces SRC to freeze pay hikes for all civil servants

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

The Salaries and Remuneration Commission has frozen salary hikes for all government employees following anti-government protests that forced President William Ruto to withdraw the Finance Bill 2024 and institute austerity measures.

This comes weeks after SRC did away with recommendations to increase the salaries of state officers, which include Cabinet Secretaries, MPs, governors, MCAs and other holders of offices listed under Article 260 of the Constitution.

The commission bowed to pressure following public uproar, and froze the increase for all state officers. In addition to the public protests, pushing for more accountability in the use of public funds, the pressure also came from a section of government employees including some MPs who, reading the country's mood, said they would reject the pay hike.

SRC, in a statement Thursday, said the freeze was on account of a stretched budget for the 2024-25 financial year. "As a consequence of the emerging fiscal constraints and budget cuts emanating from the withdrawal of the Finance Bill, 2024, the Salaries and Remuneration Commission has deferred implementation of the salary review for all other public officers in the financial year 2024/2025 until further notice, contingent upon the availability of funding," said SRC.

The protests, mostly by young Kenyans, saw the President withdraw the Finance Bill 2024, which he noted would leave the budget for the financial year that started July 1 with a Sh346 billion hole.

He further announced budget cuts that have now affected salary reviews. "This decision is informed by there being no allocated budget for the implementation of the advised remuneration and benefits for all other public officers for the financial year 2024/2025, and which was to take effect in July 2024," said SRC.

"Further, SRC made this decision in consultation with the National Treasury, while considering the principles outlined in Article 230(5) of the Constitution, to ensure fiscal sustainability of the public compensation bill."

The move is expected to contain the rise in the public wage bill that currently stands at Sh1.2 trillion.

SRC however noted that annual salary notch adjustments in existing salary structures would be applied within budget allocation but that no additional funding would be provided for implementation of the job evaluation results in the financial year 2024-25.

The commission also told public service institutions with collective bargaining agreements that would be impacted by the deferred implementation of salary review to engage the respective trade unions accordingly.

"SRC will continue to monitor the situation and consider a review subject to availability of funding, as shall be advised accordingly by the National Treasury," said SRC.

SRC said it had consulted with the National Treasury to freeze the upward salary review of all State officers. It noted that among the factors considered included the current realities of the economy, a reduced budget and existing contractual commitments.