Kenya’s Wage Bill Strains Under 247 Allowances, SRC Takes Action
Public servants in Kenya, including President William Ruto and his administration, currently receive 48 percent of their total wages in the form of allowances, the Salaries and Remuneration Commission (SRC) has disclosed. According to SRC chairperson Lyn Mengich, this marks the highest share of allowances paid out within the public sector, raising serious concerns over the sustainability of the national wage structure.
SRC’s report, initially published in 2019, highlighted that public servants are entitled to a staggering 247 different types of allowances. This represents a significant rise over the years, with allowances increasing from 31 types in 1999 to 78 in 2006, then 156 in 2014, and now reaching 247 by 2019. Mengich noted that these allowances are a substantial component of the national wage bill, estimated to have surged to Ksh1.17 trillion by June 2024.
“This unsustainable wage structure stems from the persistent payment of allowances—some of which were abolished years ago, others tied to basic salary, and even ‘mystery’ allowances that defy categorization,” SRC stated on its X page. The report further explains that inconsistent criteria, eligibility rules, and unstandardized payment methods have led to significant duplication and wastage of public funds across various government entities.
To address these issues, the SRC is implementing an Allowances Policy Guideline aimed at enhancing transparency, equity, and accountability in allowance distribution. The policy is designed to curb the rise of unexplained and unsupported allowances while promoting fairness and affordability across the public sector. By streamlining the system, SRC hopes to foster fiscal sustainability and reduce the strain on Kenya’s wage bill.
Common allowances public servants receive include remunerative payments such as house and commuter allowances, sitting allowances paid per day, as well as hardship, extraneous, domestic, and risk allowances, among others. In the 2023/2024 financial year alone, an additional Ksh24.8 billion in salaries was paid to public servants between July and March.
The SRC emphasized that allowances, which currently lack standardization, continue to be a significant challenge in controlling Kenya’s public wage bill. Without standardized controls, Mengich noted, “different public institutions justify allowances using varied criteria and rates, adding to the financial burden.”
As SRC moves forward with these new guidelines, it aims to bring about a more equitable and manageable public wage framework for Kenya.
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Kenya’s Wage Bill Strains Under 247 Allowances, SRC Takes Action
