Ruto, Gachagua, MPs set for 14% pay raise in SRC review

The Salaries and Remuneration Commission has suggested a review that would provide state offices, such as the President, the Deputy President, Cabinet Secretaries, and MPs, a 14% pay increase on average over the next two years starting next month in order to protect them from the growing expense of living.
In contrast, those who get a salary, work part-time, or are employed in the unorganized sector will continue to struggle in a harsh inflationary climate.
From July 2023 to July 2024, President William Ruto’s gross monthly compensation would increase by a further 6.7% to Ksh1,650,000. Currently, it is Ksh1,443,750.
From July 1 till July 1, Deputy President Rigathi Gachagua’s monthly income would increase from Ksh1,227,188 to Ksh1,367,438. This represents a cumulative 14.3% increase in his remuneration package over the course of two years.
Similar increases are made to the compensation of Cabinet Secretaries, which will increase from Ksh924,000 per month to Ksh1,056,000 per month starting on July 1, 2024.
From the current salary of Ksh710,000, members of Parliament, including senators, will receive Ksh741,003 and Ksh769,201 in the two following fiscal years, for a total income increase of 8.3% throughout that time.
The committee sitting allowances, which are limited to Ksh120,000 per month, are not included in the amended compensation package for senators and members of parliament.
By July 2024, county governors will earn Ksh1,056,000, an increase from their present monthly gross pay of Ksh924,000, which is comparable to the President’s pay increase.
The SRC recommends a 14% rise in the County Assembly members’ monthly compensation, which will bring their salary from Ksh144,375 to Ksh164,588 in a little over a year.
Principal secretaries, the Chief Justice, the Deputy Chief Justice, the Auditor General, judges, the Director of Public Prosecutions, the Inspector-General of Police, and the chairs of important commissions like the Independent Electoral and Boundaries Commission are additional State officials who will benefit from pay increases.
The SRC released draft revisions to state officer salary on Thursday. These revisions also address allowances and perks for state officers, including pensions, health and hospital insurance, and benefits for automobile and home loans.
Before publishing a gazette notice that would put the proposed new wages for State officers into force, the SRC has requested public feedback on the proposed remuneration packages.
The proposed review conforms with the SRC’s duty of advising the national and county governments on the compensation advantages of public officers and covers the third cycle of review since the 2013–14 fiscal year.
If authorized, it will add to the nation’s salary cost, which for the fiscal year that ended in June 2022 was Ks. 29 billion and Ks. 190.11 billion for the national government and counties, respectively.
In its report for the time period, the SRC highlighted that while revenue growth was expected to improve the sustainability of the pay bill, the wage bill’s ongoing expansion was consuming funds intended for other government expenses.
“Resources for growth and service provision were squeezed as the pay bill for the federal and local governments grew. If sustained, revenue collection growth would have a favorable effect on the wage bill to total revenue ratio, the SRC stated.
Between the fiscal years 2016–17 and 2020–21, the wage bill to total revenue ratio varied between 40% and 44%, and it was anticipated to increase to 46.26% in the year–ended June 2022.
“This implies that the ratio is projected to remain above 40%, significantly above 35%, which is the recommended ratio as per the Public Finance Management Act of 2012 and the 2015 PFM regulations,” the SRC continued.
The hiring of 5,000 teachers by the Teachers Service Commission and the 12% rise in the minimum salary on May 1, 2022, both had an impact on the wage bill for the review period ending in June 2022.
The SRC has been working to control the spiraling salary cost, including by eliminating MPs’ expenses for plenary sessions and turning down proposals for compensation raises from government agencies.
For instance, the SRC said that between January and March of this year, it rejected requests for salary evaluations, allowances, and benefits reviews, saving the taxpayers Ksh2.8 billion.
The jealousy of private sector employees, whose 5.6% wage gain in 2022 was cancelled out by inflation, will be on state officers.
Real wage growth was negative 2.7% last year as the cost of living increased significantly as a result of the drought and the Russia-Ukraine conflict.
The Central Bank of Kenya was forced to increase the benchmark lending rate earlier this week as a countermeasure since inflation has remained stubbornly high this year, mostly due to increasing food and fuel expenses.
May inflation decreased to 8.0% from 7.9% in April, but it still above the legal maximum of 7.5%.