SRC freezes salary increments for State officers after public outcry

The Salaries and Remuneration Commission (SRC) has frozen the planned upward review of salaries for State officers following massive public uproar.

Addressing the press on Wednesday, SRC Chairperson Lyn Mengich revealed that the commission had stopped the salary increment for, among others, Members of Parliament after consultations with the National Treasury.

Ms. Mengich also attributed the move to the current economic hardships and the reduced 2024/2025 budget.

“In view of the emerging fiscal constraints and the proposed budget cuts and existing contractual commitments and in further consultation with stakeholders including the National Treasury, SRC has reviewed the setting and advise of pay for the second phase of the implementation for 2024/2025,” she said.

“In consultation with the National Treasury, SRC hereby freezes the upward review of salaries for all State officers and will review the advice for all other officers, taking into account the current realities of the economy, any contractual commitment and reduced budget so as to ensure affordability and fiscal sustainability of the public wage bill.”

The SRC boss went on to defend the commission’s earlier decision regarding MPs getting a pay rise, saying that it was in line with the law.

According to Ms. Mengich, the commission is mandated to review the salaries of all public servants after two years, and the notice to increase the pay for legislators was gazetted in August last year.

She added that the commission skipped two years without reviewing salaries following the outbreak of COVID-19 in 2020.

“SRC clarifies that the salary increment for State officers has not been newly gazetted as referenced in the media. SRC set and published a gazette notice on August 9, 2023, as part of the 3rd remuneration and benefits review circle for State officers and other public officers that would be implemented over a two-year period over 2023/2024 financial year and 2024/2025 financial year,” noted Ms. Mengich.

“This review came after a two-year freeze on pay structures for the period 2021/2022 and 2022/2023 on account of the impact of COVID-19 on the economy. The remaining two years would be implemented in two phases.”

She expressed the commission’s commitment to managing the public wage bill, saying that SRC was working to ensure the country lived by its means by decreasing the current wage bill which stands at 46.64 per cent to 35 per cent by 2028.

“SRC has been conscious of the need to ensure prudent fiscal sustainability of the public wage bill and has consistently taken measures towards ensuring the public service operates within the prescribed affordability,” she noted.

“Consequently, the wage bill has come down from 54.77% of revenue in 2020/2021 to 46.64% in 2022/2023 and is expected to further decline to 35 % of revenue by 2028. SRC welcomes the support from all quarters to join efforts towards the goal of achieving the 35% wage bill to revenue ratio.”

The remarks by SRC follow public uproar after reports that the commission was seeking to increase State officers' salaries amidst countrywide protests and economic hardships.

A section of MPs and Senators came out to condemn the commission with some pushing for the disbandment of SRC, over its insensitivity to issues affecting the country.

President William Ruto also came out to call for the immediate halting of the salary increment proposals citing the need for austerity measures.