SRC says no salary increases for civil servants to lower wage bill

The Salaries and Remuneration Commission (SRC) has cautioned employers against the upward revision of civil servants' monthly salaries, citing Kenya's huge wage bill.

The SRC asked the employers not to entertain any proposals for financial reviews unless they clearly show they can afford to sustain such adjustments.

This comes days after President William Ruto raised concerns about a bloated wage bill, whose share of total revenue, he noted, had increased from 35 per cent to 47 per cent.

“We are way above [what the law recommends]. We need a conversation so that those of us who earn salaries are responsible and we can reduce our wage bill and free more resources to create jobs for our young people,” he said.

The SRC issued the advice in Nairobi on Monday, during the third National Wage Bill Conference at the Bomas of Kenya in Nairobi, which aims to align the country's expenditure with its revenue capacity.

Chairperson Lyn Mengich noted the importance of fiscal sustainability and harmonisation.

"Affordability and fiscal sustainability are key considerations in any collective bargaining negotiation. Employers are therefore advised not to consider any reviews of financial items where there is no demonstration of the ability to afford and sustain them, among other considerations," Mengich said.

She emphasised that the resolutions the conference comes up with will help the country achieve the recommended wage bill share of 35 per cent.

“The resolutions will pave the way for Kenya to reap the benefits of a fiscally affordable and sustainable wage bill,” she said.

Further noting that a bloated wage bill threatens the nation’s economic growth, Mengich added that the SRC is committed to implementing measures to tame it.

She reported that the SRC has saved Sh17.3 billion so far by streamlining the framework on allowances in the public sector, adopted in the last four years.

“Through streamlining the allowances framework, the SRC has saved Sh17.3 billion over four years by implementing phases one and two of the framework,” she said.

Chief of Staff and Head of Public Service Felix Koskei said the key to lowering the wage bill is increasing revenue through productivity and service delivery.

Koskei urged the conference to better manage public resources for economic growth and sustainability.

“Achieving economic resilience and sustainable development requires balancing the public wage bill with productivity-boosting innovations,” he said.