All Kenyan civil servants have had their salary increment frozen at least for the next two years starting from July, following their prospects of better fortunes amid tough economic times due to the Covid-19 pandemic.
The suspension was announced by the Salaries and Remuneration Commission (SRC) affecting basic salary, allowances and benefits paid in the public service sector.
The freeze affects all government Employees.
Report coming in is that the state has been struggling to raise revenues to run the bloated public wage bill that consumes more than half of taxes,delaying spending on development projects.
The Salaries and Remuneration Commission (SRC) decided to suspend the implementation of the third pay review cycle on advice by the Treasury.
However ,The National Treasury advised the commission that due to the current effects of Covid-19 Pandemic and there is slow economic recovery expected as well as slow revenue generation, & should consider postponing the review for the next two fiscal years until the economy improves.
This way, the National Treasury will review the performance of the economy and advise SRC as to when the review can be done based on the current prevailing circumstances to ensure affordability and fiscal sustainability,” said SRC chairperson Lyn Mengich this Thursday.
The commission said the pay increment would have costed the government a minimum of kes 82 billion.
However its good to note public wage bill is 17% above the global average of 35% for middle-income countries and has been a point of concern for President Uhuru Kenyatta’s administration.
The current wage bill stands at more than Sh800 billion, as having risen from Sh458 billion in 2013.