Treasury extends public sector hiring freeze for three more years

Thousands of young Kenyans waiting for government jobs have been dealt a blow after the Treasury confirmed that the public sector hiring freeze will remain in place for the next three financial years.

The restriction, which began in 2021, has now been prolonged, shutting the door on new entrants into state employment.

The directive means that ministries, departments, and agencies will not take in fresh staff and will only be allowed to fill positions left vacant through retirement, death, or disciplinary dismissals.

For graduates and job seekers, this decision eliminates any chance of new opportunities in the public service.

Treasury Cabinet Secretary John Mbadi, in a circular dated August 8, said the move is part of measures to keep the public wage bill under control.

“Recruitment of employees to fill new positions is halted except for replacements due to natural attrition, which must be budget-neutral and approved by the National Treasury,” the circular stated.

The guidelines further stop staff promotions and block any allocation for additional workers unless cleared by the Treasury.

“Resource allocation for new staff or upgrades requires prior approval from the National Treasury,” Mbadi said, adding that any review of pay and benefits must also have the support of the Salaries and Remuneration Commission and Treasury approval for funding.

He stressed that the wage bill must not surpass 35 per cent of revenue and directed that “all personnel emolument allocations must be documented in the Integrated Personnel Payroll Data system.”

Treasury has also ordered government offices to provide precise estimates of their personnel expenses, including quantities and rates, and to account for approved recruitment costs and annual salary adjustments.

These are to be guided by the SRC and signed off by bodies such as the Public Service Commission, Teachers Service Commission, Judiciary Service Commission, National Police Service Commission, and Parliamentary Service Commission.

Even for priority sectors like teaching, security, and health, the Treasury has set strict checks, insisting that requests for new positions must be justified by service needs and must include all financial implications in the budget.

In addition, government entities have been instructed to identify contracts ending in the 2026–27 financial year and in the Medium Term, and to provide estimates of gratuities that will fall due in that period.

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