Ruto orders Treasury to review SRC's new pay raise

President William Ruto has directed the National Treasury to review the Gazette notice by the Salaries and Remuneration Commission (SRC) increasing the salaries of state officers.

In a statement on Wednesday, by State House Spokesperson Hussein Mohamed, the president said all arms of government must live within their means, a message he has reiterated in the past while noting a commitment to reducing wastage.

"President William Ruto has directed the National Treasury to review the Gazette Notice dated August 9, 2023, from the Salaries and Remuneration Commission (SRC) regarding the remuneration and benefits for State officers in the Executive of the National Government, the Senate and the National Assembly, in light of the withdrawal of the Finance Bill 2024 and the fiscal constraints expected this financial year," Hussein announced.

The salary increments took effect on July 1, 2024.

Higher tax proposals in the Finance Bill, 2024, sparked nationwide demonstrations that forced Ruto to withdraw the bill. The protests are continuing, the new goal being his resignation for reasons including grand corruption by government officials, a high cost of living exacerbated by excessive taxation, and the lack of basic services for the public while officials lead lavish lifestyles.

Several lawmakers have rejected the SRC's proposed pay increase, which would see their monthly pay go from Sh725,502 to Sh739,600.

The move has stirred widespread criticism as the country grapples with economic challenges exacerbated by the COVID-19 pandemic.

Among the legislators who have rejected the proposal, citing Kenya's economic crisis, are Nairobi Senator Edwin Sifuna, Kericho's Aaron Cheruiyot, and Nandi's Kiprotich Cherargei.

Others are Senate Minority Leader Stewart Madzayo and Embakasi East MP Babu Owino, who noted that it’s wrong for the government to increase salaries while Kenyans go to bed hungry, and are jobless or running businesses are on the brink of closure.

Senator @scherargei : We invited SRC here & they told us they don't have money to increase the UHC Doctors and JSS. We never requested salary increments, and SRC is abusing its powers by trying to set us up against the public, I propose the disbandment of SRC. pic.twitter.com/WxgzHOHlX0

— The Eastleigh Voice (@Eastleighvoice) July 3, 2024

The salary adjustment follows Gazette Notice No. 10346 issued by the Salaries and Remuneration Commission (SRC) on August 9, 2023.

Shortly before the president’s directive, Public Service Cabinet Secretary Moses Kuria had declined to implement the pay increase for cabinet and principal secretaries.

Instead, Kuria called on the SRC to withdraw the 2023 Gazette notice citing the need for public servants to make the same sacrifices expected of other Kenyans.

“As the Cabinet Secretary responsible for Public Service, Performance and Delivery Management therefore, I decline to implement the gazette notice on increased salaries as applies to the Executive arm of National Government and urge the Commission to degazette the implementation of the new salary structure, in its entirety, across all levels of Government,” he stated.

The CS noted that the Public Finance Management Act, 2012 provides that Kenya's public Wage bill should not exceed 35 per cent of the national budget.

He said Kenya’s current trajectory indicates a continual rise in expenditure on salaries, allowances, and benefits for public servants, placing immense strain on our national finances.

“This is not a challenge we can afford to ignore. Reducing the public wage bill requires a multifaceted approach, one that balances fiscal prudence with a commitment to fair compensation for our public servants,” he argued.

Senator @Aaroncheruiyot: The yearly salary increment that is being discussed, we must make a resolution and say, we reject in light with financial situation. pic.twitter.com/2klmKpnJOd

— The Eastleigh Voice (@Eastleighvoice) July 3, 2024

The SRC's notice entails a review and establishment of remuneration and benefits for state officers within the executive arm of the national government as part of the Third Remuneration and Benefits Review Cycle spanning Financial Years 2021-2022, 2022-2023, 2023-2024, and 2024-2025.

Only salaries for President William Ruto and Deputy President Rigathi Gachagua, who earn Sh1,443,750 and Sh1,227,188, respectively, will not be adjusted.

Prime Cabinet Secretary Musalia Mudavadi, all 22 Cabinet Secretaries, Attorney-General Justin Muturi, Head of Public Service Felix Koskei, and Secretary to the Cabinet Mercy Wanjau would have received Sh33,000, which would make their monthly pay Sh990,000.

The principal secretaries, Inspector General of Police Japhet Koome, and National Intelligence Service (NIS) Director General Noordin Haji would get Sh819,844, up from Sh792,519, while Directorate of Criminal Investigations (DCI) Director General Mohamed Amin and Deputy Inspector General (IG) Noor Gabow would earn Sh684,233, from Sh652,742.

More on SRC's proposals: SRC announces salary increases for MPs and state officials, here are the changes