The Salaries and Remuneration Commission (SRC) is seeking to have a say when public entities are hiring, raising concerns that uncontrolled employment in government has raised the public wage bill.
SRC says that while it lacks a direct mandate to make hiring decisions in the public service, the employment of unnecessary staff has constituted a key driver of the public wage bill, indicating the need to be consulted when institutions want to add employees.
“Some of the drivers of the wage bill growth are not necessarily in the purview of the commission. When it comes to increasing employee numbers, the commission has no control, and yet that is a driver of the wage bill," outgoing SRC Chairperson Lyn Mengich said.
"It is important that the commission works in collaboration with stakeholders to address those areas that are not in the direct purview of the commission.”
Ms Mengich spoke on Thursday as the current SRC released a report to mark the end of its six-year term. The mandate of current SRC Commissioners, including Ms Mengich, will end on September 11.
The agency cited lack of control in public service hiring and structures of different public entities as among key drivers of the public wage bill, noting that while hiring in sectors such as education, health and security has economic benefits, some entities have been adding employees who bring no value.
Ms Mengich gave the example of a Court of Appeal ruling that upheld the High Court's decision to quash appointment of Chief Administrative Secretaries (CASs) as demonstrating that the commission ought to be consulted on decisions with an impact on the public wage bill.
“One of the things that the court pronounced itself is that SRC should have been consulted insofar as the impact of that role in the wage bill. There was a clear pronouncement that actually the commission should be part of that in terms of impact on the wage bill,” she said.
The SRC also says that it should have a role when new offices are being created, to advise on the impact of any new offices on the public wage bill, even as it notes that there currently exist entities charged with making decisions on new hiring and creation of roles.
As the current commission that has been at the helm of making key decisions on Kenya’s public wage bill calls it a day, it leaves behind huge work to be done by the team that will take over, key among them controlling the public wage bill that remains far above the legally stipulated 35 percent of taxes.
In the fiscal year to June 2024, the national and county governments are estimated to have spent Sh1.17 trillion salaries and allowances, against the Kenya Revenue Authority’s (KRA) Sh2.4 trillion taxes during the same period.
This means that the public wage bill constituted 48.7 percent of taxes, a slight drop from the 51 percent ratio that the current commission started with in 2018/19.
In absolute terms, the wage bill has grown by Sh300.9 billion during the six years.
Ms Mengich said the increase in the public wage bill, in absolute terms, has been caused by increased employment in the public service, though noting that some of the new jobs were unnecessary.
“When it comes to (employment) numbers, it is directly under the purview of the public service commission and other employing institutions,” she said.
She said while the commission is considering legal interpretations to decide how to address issues of new hirings in government and how they impact on the public wage bill, it is currently looking at “how we can work together” with employing institutions.
“But for now how the commission has looked at it, it is best achieved by going through the way of collaboration,” Ms Mengich said.
The SRC also says that harmonization of pay across the government remains top in its agenda to end pay disparities, noting that currently there exist huge gaps caused by historical issues.
The SRC said it has been conducting job evaluations in order to develop uniform salary structures for workers, which would see the pay of the same level across different entities and sectors harmonized.
Over the past six years, the commission evaluated 47,500 jobs, developed grading structures and attendant remuneration structures.
“The difference in pay is so huge that if today the Commission said let’s harmonise, it’s unaffordable. It’s very expensive. It will be progressively harmonized over a period of time, but the commission has established a mechanism upon which that harmonization will be realized overtime.
In the pursuit of equalizing pay in government, the SRC also noted that it has developed a framework for the establishment of a single entity to engage in salary negotiations with unions on behalf of government.
“The objective is to ensure that there is a sectoral body that will look at what is being negotiated in different sectors and introduce harmony in what is happening and to ensure that the principles are adhered to,” Ms Mengich said.
