Public Sector Pay Slashed: IEBC, SRC, and PSC Hit Hard.
The government is reducing salaries, allowances, and retirement payments for officials in several key public offices this year. This move aims to lower the nation’s public wage expenses.
A report from the National Assembly Liaison Committee indicates that these cuts are expected to save approximately Ksh75.6 million. Consequently, the total public wage bill for these offices will decrease to Ksh4.08 billion, down from the previous Ksh4.16 billion.
“Salaries and allowances for constitutional and independent offices are proposed to decrease by Ksh75.6 million, from Ksh4.16 billion to Ksh4.08 billion,” stated the committee’s report, led by Gladys Boss Shollei.
The Independent Electoral and Boundaries Commission (IEBC), the Salaries & Remuneration Commission (SRC), and the Public Service Commission (PSC) will experience these reductions. Conversely, the National Police Service Commission (NPSC) is the only body set to receive an increase.
The report, presented to the National Assembly for debate, details that the new IEBC commission will receive a 50 percent cut in salaries and retirement payments. The SRC will see a Ksh33.1 million reduction in retirement payments and a Ksh23 million decrease in allowances.
A retirement payment, or gratuity, is a single, large payment given to employees upon retirement or the end of their contract. It acknowledges their service and is typically calculated as a percentage of their basic salary over a specific period. Contract employees receive this payment at the end of their contracts, often amounting to 25 percent of their total earnings.
“The National Police Service Commission increased by Ksh36.8 million in gratuity and Ksh3 million in salaries, while the IEBC has a 50 per cent reduction for the Chairman, deputies, and commissioners,” the report clarified.
Former IEBC Chairperson Wafula Chebukati and his commissioners received approximately Ksh12 million and Ksh10 million, respectively, upon their departure. These figures are expected to be significantly lower for the new commission.
This is the second round of cuts for these offices. In 2020, the SRC reduced the basic pay of workers in independent offices, following salary reductions for Members of Parliament, MCAs, and other senior state officials.
In 2023, the SRC announced the elimination of retreat, sitting, and non-practice allowances for public servants, as part of the government’s effort to control the growing wage bill, which has almost doubled in six years.
President William Ruto and his administration are actively working to reduce the public wage bill, aiming to bring it below 35 percent of revenue. Currently, the government’s public wage bill consumes approximately 43 percent of its revenue, as of April 2024.
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Public Sector Pay Slashed: IEBC, SRC, and PSC Hit Hard.
