Kenya’s wage bill zooms up thanks to reward scheme

September 11, 2023

(3 minutes read)

Bonuses, pay increments and Collective Bargaining Agreements (CBAs) cost the Kenyan government Sh4.27 billion in the year ended June. There is a growing push by government workers for better remuneration.

The SRC disclosed that it approved salary increments, requests for bonuses and allowances and CBAs. That has hiked up the wage bill considerably. The increase was more than the Sh2.5 billion increase recorded in the previous financial year. This has exerted pressure on the exchequer at a time when the government is pushing a fiscal consolidation policy.

Analysis of the data shows that bonuses and rewards accounted for the biggest chunk at Sh1.43 billion (34 percent) that was paid in the last three months of the previous administration. This was followed by salary reviews at Sh1.29 billion and allowances and benefits (Sh1.2 billion). The total value of advice for the financial year 2022-23 amounted to Sh4.27 billion, representing 52.26 percent of the value of requests received.

SRC added that the requests from workers in the just-ended financial year amounted to Sh8.17 billion as workers eyed more pay in the face of inflation. The sharp rise in take-homes came at a time when the top-performing civil servants started getting cash bonuses under a new public service reward scheme, which was unveiled two years ago. Government workers such as teachers, doctors, and nurses who meet annual targets set by performance contracting committees receive cash rewards on top of their salaries and allowances.

The Performance Management Regulations 2021 paved the way for the formation of an awards scheme targeting employees who exhibit ethical practices and also come up with innovations that lead to improved public service delivery.