SRC chairperson Lynn Mengich raises red flag on Kenya's wage bill

Speaking on the HOT 96 FM breakfast, Salaries and Remuneration Commission (SRC) chairperson Lynn Mengich said the public service wage bill has seen an upward trend recently. Figures show that the wage bill is projected to rise further; way above the trillion-shilling mark.

"The wage bill has been a problem in Kenya for a very long time. We may say blotted but it is always good to look at the context. Actually 50 percent of the wage bill is in the teaching sector. I am not sure then whether to call it a problem since we have an obligation to ensure that essential services are provided," Mengich said.

Mengich, who is nearing end of her term at the commission raised concerns over the wage bill to revenue ratio; which has surpassed the recommended 35 per cent limit stipulated in the Public Finance Management Act.

"This is still a major problem as the Public Finance Act states that the wage bill should not be more than 35 percent of the revenue," she told show hosts Jeff Koinange and Patrick Igunza.

According to Mengich, the wage bill to revenue ratio gap could drop further. She also defended the recent move that saw SRC put a freeze on salary structures, saying it has helped.

"When we took over the wage bill was at 51.5 per cent of the total revenue. It came down to 46.6 per cent in 2022/2023; with projections for the last financial year at 39.2 percent," she noted.

In March2024, SRC said that the country is living beyond its means and that the cost of the wage bill is eating into much of the country's revenues beyond the allowed maximum of 35 percent.

Mengich said the growing appetite and endless hiring by the government risks pushing up the wage bill further, making it difficult to reserve resources for delivery of services and development.

This comes as the Union of Kenya Civil Servants has moved to court challenging a decision by the Salaries and Remuneration Commission (SRC) to freeze salary increments for all civil servants.

The union argues that SRC's decision denies its members’ right to a pay rise. They want the court to issue a temporary order directing SRC to temporarily suspend its decision pending the hearing and determination of the application.

"Our members and low and middle-level employees and hence any salary cut or delay in any manner is likely to financially affect them greatly in regard to their daily survival," the Union argued.

On Tuesday, the government moved to avert the strike promising civil servants a salary increment of between Ksh.1,000 and Ksh.3,000, backdated to July 1st.

In a circular signed by Public Service Principal Secretary Amos Gathecha, civil servants will also receive a higher house allowance.

According to the new structure, which covers the second phase of the Collective Bargaining Agreement (CBA), the lowest cadre within the civil service, whose current pay is Ksh.16,910, will now go home with the new pay of Ksh.18,250.