SRC approves Sh43 billion salary rise despite wage bill concerns
The payout followed months of stalled approvals earlier in the year after the commission was left without a quorum when the terms of seven commissioners lapsed.
Civil servants earned an additional Sh43.1 billion in the financial year ending June 2025 after the Salaries and Remuneration Commission (SRC) cleared a series of salary deals, even as pressure mounts over the fast-rising public wage bill.
Figures released by the commission show that Sh36.45 billion of the increase, representing 84 per cent, was released in the final quarter between April and June.
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The payout followed months of stalled approvals earlier in the year after the commission was left without a quorum when the terms of seven commissioners lapsed.
“During the financial year 2024/2025, the estimated cost implication of the 289 requests received by SRC from public service institutions was Sh70.95 billion. Upon evaluation, SRC recommended approvals with an estimated financial implication of Sh43.19 billion (60.9 per cent of the total amount requested),” the SRC said.
Collective Bargaining Agreements formed the bulk of the reviewed pay, accounting for Sh34.1 billion or 93 per cent of the total increase, while job evaluation requests added Sh2.04 billion, or 5.6 per cent.
Between April and June, the commission received 174 requests on allowances and benefits, 44 linked to CBAs, 22 tied to productivity and performance, and 49 on job evaluation and pay structures.
The release of the funds came against a backdrop of rising consumer prices, with inflation standing at 4.5 per cent in August, the highest level in more than a year.
Higher food and transport costs have placed pressure on households, with the SRC maintaining that the reviews were necessary to protect workers’ earnings from erosion.
The adjustment comes in sharp contrast with the private sector, where most companies have frozen salaries despite the rising cost of living and new statutory deductions.
In recent months, workers’ take-home pay has been further reduced by increased contributions to the Social Health Insurance Fund, the National Social Security Fund, and the housing levy.
At the same time, concerns have grown over the sustainability of the public wage bill, which is projected to reach Sh1.245 trillion by the close of the 2024/2025 financial year.
This would consume 40.6 per cent of ordinary revenue, overshooting the 35 per cent limit set under the Public Finance Management Act, 2015, and leaving limited resources for development projects.
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