Moses Kuria, the Cabinet Secretary for Public Service, Performance, and Delivery Management, has decided against implementing salary increases for top government officials, citing concerns over the sustainability of public expenditure.
CS Kuria argued that maintaining an annual expenditure of Kes.1.1 trillion to support 900,000 public servants across both levels of government is unsustainable for Kenya.
“This amount represents 47% of our national revenues,” Kuria explained, “leaving the remaining 54 million Kenyans with only 53% to cover critical expenses such as debt servicing, development projects, and other essential services.”
Kuria’s decision comes in response to a Gazette Notice issued by the Salaries and Remuneration Commission (SRC) on August 9, 2023. The notice detailed proposed salary and benefit increments for state officers, scheduled to take effect from July 1, aimed at various branches of government, including the Executive, Senate, National Assembly, county governments, and independent commissions.
Proposed Salary Increases
Under the proposed remuneration adjustments, the salaries of certain top officials were set to increase significantly. While the President and Deputy President’s salaries were to remain unchanged, the Prime Cabinet Secretary and other Cabinet Secretaries were slated to receive Kes.990,000 per month, up from Kes.957,000.
Principal Secretaries, the Inspector General, and the Director General of NIS were to see their monthly earnings rise to Kes.819,844 from Kes.792,519, while the Deputy Inspector General of the Kenya Police, Administration Police, and the Director of Criminal Investigations were in line for Kes.684,233, up from Kes.652,742.
Speakers of the National Assembly and Senate were projected to earn Kes.1,208,362 monthly, up from Kes.1,185,327, and Deputy Speakers would receive Kes.966,690.
Majority and minority leaders were set to earn Kes.800,019.
Governors’ salaries were also poised to increase to Kes.990,000 from Kes.957,000, and MPs and senators were to see their salaries rise from Kes.725,502 to Kes.739,600, as per the SRC’s proposal.
In a statement issued on Wednesday, Kuria unequivocally stated, “As the Cabinet Secretary responsible for Public Service, Performance, and Delivery Management, I decline to implement the gazette notice on increased salaries as it applies to the Executive arm of the national government. I urge the Commission to rescind the implementation of the new salary structure across all levels of government.”
Kuria further called upon the Salaries and Remuneration Commission and other public sector institutions to lead by example and make the sacrifices they expect ordinary Kenyans to endure.
Reduce Public Wage Bill to 35% of Revenue
He referenced the resolutions of the Third National Wage Bill Conference held from April 15 to 17, 2024, which advocated for reducing the public wage bill to 35% of revenue, as mandated by the Public Finance Management Act 2012.
Kuria highlighted the austerity measures outlined by President William Ruto following the withdrawal of the Finance Bill 2024, emphasizing that these measures necessitate prudence in public spending.
“The PFM Act, 2012, clearly stipulates that Kenya’s public wage bill should not exceed 35% of the national budget,” Kuria reiterated. He stressed that the current trajectory of escalating expenditures on salaries, allowances, and benefits for public servants poses a significant strain on national finances, demanding a balanced approach that ensures fiscal responsibility while fairly compensating public servants.
“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,” the CS said.
“I believed then, just as now, that this is more of a moral and ethical issue than an economic issue.” Kuria affirmed.
President William Ruto’s directive to the National Treasury to review the SRC’s gazette notice coincided with Kuria’s decision. Ruto underscored the imperative for all arms of government to operate within their financial means, especially amidst the fiscal constraints anticipated in the current financial year.
