The Salaries and Remuneration Commission (SRC) has announced a freeze on the review of salaries for all state officers, following consultations with the Treasury. This decision comes in light of recent budget cuts and ongoing economic discussions in the country.
Addressing the press on Wednesday, SRC Chairperson Lyn Mengich explained that the freeze is aimed at ensuring the affordability and fiscal sustainability of the wage bill.
“In consultation with the Treasury, SRC hereby freezes the upward review of salaries for all state officers, and will review the advice for all other public officers, taking into account the current realities of the economy and a reduced budget,” Mengich stated.
Mengich also clarified that the reported salary increase had not been newly gazetted, as it was set and published in August last year as part of the Third Remuneration and Benefits Review cycle for state and other public officers.
This review was intended to be implemented over two years, 2023-24 and 2024-25, following a two-year freeze on pay structures due to the economic impact of COVID-19.
While the freeze affects state officers, Mengich noted that salary reviews for lower-level public officers will continue in accordance with existing contractual agreements.
Addressing the possibility of salary cuts as suggested by members of parliament, Mengich highlighted the importance of adhering to legal frameworks.
She emphasized that Kenya, as a signatory of the International Labor Organisation (ILO), must follow stipulated guidelines.
“We are not saying it cannot be done, but we can only do it after considering the law, and through consultations. In fact, we welcome such a move and are ready to engage with them through the Parliamentary Service Commission,” she said.
Mengich welcomed support from all sectors to help achieve the goal of a 35 percent wage-bill-to-revenue ratio. While acknowledging that the wage bill is still high, she noted that it has decreased from 54.77 percent of revenue in 2020-21 to 46.64 percent in 2022-23. “The wage bill is expected to further decline to 35 percent by 2028,” Mengich added.