Public servants secure Sh43bn pay boost as wage bill soars
Data from the SRC shows that Sh36.45 billion, or 84 percent of the additional pay, was released between April and June this year.
Public servants took home an additional Sh43.1 billion in the year ending June 30, 2025, following salary adjustments sanctioned by the Salaries and Remuneration Commission (SRC), providing them with a crucial cushion at a time when households are grappling with rising costs.
Data from the SRC shows that Sh36.45 billion, or 84 percent of the additional pay, was released between April and June this year.
The boost came after months of delays in processing pay reviews due to a lack of quorum at the commission following the exit of seven commissioners whose terms had expired.
“During the financial year 2024/2025, the estimated cost implication of the 289 requests received by SRC from public service institutions was Sh70.95 billion. Upon evaluation, SRC recommended approvals with an estimated financial implication of Sh43.19 billion (60.9 percent of the total amount requested),” the SRC said.
Collective Bargaining Agreements (CBAs) accounted for the largest share of the pay rise, at Sh34.1 billion or 93 percent of the total, while job evaluations amounted to Sh2.04 billion, representing 5.6 percent.
In addition, SRC received 174 requests on allowances and benefits, 44 on CBAs, 22 tied to productivity and performance, and 49 on job evaluation and salary structures in the last quarter of the financial year.
The timing of the pay rise coincided with persistent inflation pressures, which stood at 4.5 percent in August, the highest level since June 2024.
Higher food and transport costs have been the main drivers of the price surge.
The SRC has defended the adjustments, noting that they are necessary to shield public servants from eroded purchasing power.
While government employees secured higher pay, many private sector workers continue to endure stagnant salaries despite rising statutory deductions.
Recent increases in contributions to the Social Health Insurance Fund and the National Social Security Fund, along with deductions from the housing levy, have further reduced disposable income for households.
The surge in pay, however, has heightened concerns about the sustainability of the wage bill.
Projections show that the public sector wage bill could reach Sh1.245 trillion by June 2025, up from Sh987.7 billion four years ago.
This would push it to 40.6 percent of ordinary revenue, well above the 35 percent ceiling set under the Public Finance Management Act, 2015, leaving fewer resources for development spending.
