Nairobi, August 9, 2023 - Civil servants in Kenya are set to benefit from a salary increase ranging between 7 to 10 percent, with the adjustments being applied retroactively from July 1. The announcement of these increments was made today by Lyn Mengich, the Chairperson of the Salaries and Remuneration Commission (SRC).
Budget Allocation and Impact on Civil Servants
The National Treasury has allocated a budget of Ksh21.7 billion for civil servants' salary adjustments in the financial year 2023/24. This allocation follows the constitutional principle of affordability and fiscal sustainability.
The salary increments will benefit a wide range of civil servants, including teachers, doctors, nurses, police officers, military personnel, and those in various executive roles.
Sector-Based Allocation Breakdown
The allocation of salary increments is based on job levels and sectors:
- The Executive: Ksh126 million (0.6%)
- Parliament State Officers: Ksh78 million (0.4%)
- Judiciary State Officers: Ksh305 million (1.4%)
- County State Officers: Ksh408 million (1.9%)
- Teachers: Ksh9.5 billion (44.2%)
- Civil Service: Ksh1.8 billion (8.5%)
- County Governments: Ksh4 billion (18.8%)
- Uniformed and Disciplined Forces: Ksh4.5 billion (20.9%)
- Other Public Officers: Ksh745 million (3.4%)
Impact on Wage Bill and Government Ratios
The wage bill is projected to rise from Ksh987 billion to around Ksh1 trillion, accompanied by an increase in the number of employees to approximately 968 million. Mengich defended this increase, highlighting the government's focus on hiring civil servants in vital sectors like health, education, teaching, and security to achieve desired ratios.
She emphasized that the wage bill's ratio to Gross Domestic Product (GDP) and revenue is within reasonable limits, aligning with the country's economic development.
Efforts to Manage Wage Bill and Fiscal Sustainability
The SRC aims to ensure that GDP and revenue growth outpaces the growth of the wage bill. With the current analysis showing positive indicators, SRC will also review and advise on remuneration and benefits to promote fiscal sustainability.
Furthermore, the commission is advocating for increased public service productivity by addressing issues such as ghost workers and implementing employee appraisals.
The salary increments and the comprehensive approach by the SRC reflect a strategic effort to balance the welfare of civil servants with fiscal prudence in Kenya's economic landscape.