SRC Freezes Salary Increase For All Govt Officers After Ruto Order

The Salaries and Remuneration Commission (SRC) has frozen the upward salary review for all state officers following consultations with the National Treasury.

Addressing the press on Wednesday, July 3, Commission chairperson Lyn Mengich termed the recent budget cuts and the current economic situation in the country as the reasons for the latest decision.

"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 to ensure affordability and fiscal sustainability of the wage bill," she announced.

Furthermore, the SRC boss noted that whatever was frozen would have been implemented in the current financial year 2024/25, but the commission took into account the fiscal constraints and the budgetary cuts.

"You are all aware that the government stated that there will be budgetary cuts and will therefore impact what would have been implemented from the first of July this year," she continued.

While making the announcement, the SRC chairperson commended Members of Parliament and other government officials for backing up the decision to reject the pay hikes.

She however asked the lawmakers to work hand in hand with the remuneration commission to ensure a balance is established between the wage bill and the revenue collected. 

"As a commission, we support all stakeholders who are aligned with what we have always talked about. We have always talked about the reduction of the wage bill," Mengich remarked.

"We are aware that several MPs have come out in the past few days, especially today to support the position that SRC has always taken and have indicated they are supporting a freeze."

Earlier, President William Ruto directed the National Treasury to review the Gazette Notice dated August 9, 2023, from the SRC regarding the remuneration & 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.

"The President has emphasised that this is a time, more than ever before, for the Executive & all arms of government to live within their means," State House spokesperson Hussein Mohammed stated on X.

As detailed in the Gazette Notice published by SRC in August 2023, the increments were reported to have taken effect on July 1. Per the new rates, speakers of both houses in Parliament were to get an increase from Ksh1,185,327 to Ksh1,208,362.

Furthermore, their deputies would get a pay rise from Ksh948,261 to Ksh966,690 while Majority Leaders would see a Ksh15,251 increase. The leaders who include Kimani Ichung'wah, Opiyo Wandayi, Senator Aaron Cheruiyot and Stewart Madzayo were set to earn Ksh800,019 from Ksh784,768. 

New salaries for MPs and Senators were to be Ksh739,600 from the past Ksh725,502.

In the executive, Prime Cabinet Secretary Musalia Mudavadi, Cabinet Secretaries and the Attorney General got a salary raise of Ksh33,000, with the officers taking home Ksh990,000 from Ksh957,000 last month.

However, only President William Ruto and Deputy President Rigathi Gachagua were revealed to have their salaries retained. Ruto will continue earning Ksh1,443,750 as Gachagua continues to earn Ksh1,227,188.

At the same time, Public Service Cabinet Secretary Moses Kuria wrote to SRC declaring that he would not implement its Gazette Notice on salary increments for public servants.

"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 Council of Governors on its part urged SRC to immediately withdraw the proposed salary increments for all County State Officers including; Governors, Deputy Governors and County Executive Committee Members.