Kenya Union of Civil Servants Secretary-General Tom Odege.
Civil Servants are gearing up for work boycott next month if the second phase of their Collective Bargaining Agreement (CBA) that was to be implemented in July is not honoured, correspondence seen by the Saturday Nation shows.
This comes as the government continues to make frantic efforts to avert a strike by teachers that is expected to begin next week.
The Union of Kenya Civil Servants (UKCS) has warned of work boycott if the government fails to implement the second phase of the CBA – basic salary increment and house allowance.
UKCS Secretary-General Tom Odege told the Saturday Nation that if the increment will not be reflected on the members’ September payslips, then the workers would have no option but to remain home.
“The government should prepare for hard times on this because we will not relent. If civil servants don’t see the money, the only option will be to go on strike,” Mr Odege said.
The Saturday Nation has learnt that Mr Odege had a long meeting with the new Cabinet Secretary for Public Service Justin Muturi at his office yesterday from around 11am to discuss the CBA.
Mr Odege confirmed the talks with Mr Muturi, whom he said has committed to ensuring the pay deal is implemented.
“The minister is positive about our CBA. He said he would meet the National Treasury Cabinet Secretary and plan its implementation,” Mr Odege said.
The Civil Servants Union signed the CBA last year. The pay increment was to be implemented in two phases.
Phase One was implemented but Phase Two, which was to begin in July, was slowed by the Salaries and Remuneration Commission (SRC), which deferred its implementation through a circular.
In the July 16, 2024 circular, SRC said salary reviews for public servants would not be effected for the financial year 2024/25 due to fiscal constraints and budget cuts emanating from the withdrawal of the Finance Bill, 2024.
“Public service institutions with Collective Bargaining Agreements that are impacted by the deferred implementation of salary review in the financial year 2024/25 are advised to engage the respective trade unions accordingly,” read the circular.
The commission said the review would remain frozen until further notice “contingent upon the availability of funding” and advice from the National Treasury.
However, Mr Odege said the SRC has no powers to defer the implementation of the CBA, adding that only the courts can give direction on the matter.
“Once a CBA has been signed, it is registered with the court and is legally binding to both parties. It can only be challenged in court and not through a circular as purported by the SRC,” Mr Odege said.
The Saturday Nation has seen a series of letters written by Ministry of Public Service, Performance and Delivery Management Principal Secretary Amos Gathecha to SRC Chief Executive Officer Anne Gitau and another by National Hospital Insurance Fund (NHIF) CEO Elijah Wachira over the implementation of the salary deal.
One letter dated July 31, 2024 written by the Public Service Principal Secretary to Ms Gitau reminds her about the implementation of Phase Two of the salary review for civil servants.
Fire-fighting
In the agreement which was deposited at the Labour Relations Court, the implementation of Phase Two was to start in July 1, 2024 to June 30, 2025
The reviews for the civil servants containing Sh1,691,675,113 for basic salary and Sh322,129,938 for house allowance were duly approved by the commission in a letter dated August 3, 2023 and budget allocated towards its implementation in the financial year 2023/2024.
“It is further confirmed that Phase Two of the salary review was part of the commitment in the registered CBA, which was duly deposited with the SRC. The purpose of this letter, therefore, is to bring to your attention your advice on the way forward,” reads Mr Gathecha’s letter.
On May 17, 2024, Mr Gathecha wrote to National Treasury Principal Secretary Chris Kiptoo over Sh9.8 billion the government owed the National Hospital Insurance Fund for provision of comprehensive group life, last expense, work injury benefits and group personal accident insurance covers for civil servants and employees of the National Youth Service (NYS).
The NHIF has been offering services to civil servants and employees of the NYS for three years covering April 15, 2021, to April 14, 2022, April 14, 2022, to April 14, 2023, and April 15, 2023, to April 14, 2024.
The three-year contract was renewed annually under government-to-government agreement.
During the first year cycle, which began on April 15, 2021 to April 14, 2022, the premium was paid in full. It amounted to Sh6.8 billion.
However, during the second and third year of the contract, Mr Gathecha informed the Treasury PS that the premium was partially paid.
“The outstanding premium due for the second and third year cycles is Sh2.8 billion and Sh6.8 billion respectively, totalling Sh9.8 billion,” the letter reads.
“Given the circumstances, there are pending claims from NHIF that require to be settled as soon as possible. The purpose of this letter is to request you to make arrangements to enable us to settle the outstanding premium.”
Though the government made some payments, a total of Sh5,584,956,324 was still outstanding.
In a letter dated August 13, 2024, Mr Wachira wrote to Mr Gathecha warning that failure to settle the amount in seven days would affect continuity of the service.
“The delayed payment has caused financial distress to NHIF as we are required to continue fulfilling our contractual obligations to healthcare providers for services accessed by beneficiaries of the scheme,” Mr Wachira says in the letter.
“We request for urgent settlement of the outstanding premium of Sh5, 584, 956,324 within seven days to ensure continuity of services.”
The seven days given by NHIF for the settlement of the dues elapsed on Monday, and Mr Odege confirmed that the government has not remitted the amount.
“There is no amount that has been paid to NHIF, so they have terminated the contract,” Mr Odege said.
The UKCS secretary-general demanded to know why the government has failed to settle the amount, adding that civil servants have been left to their own devices as far as their health is concerned.
“Civil Servants have been left without a scheme and the only option is to look for a private cover. We are questioning the rationale because if the government has failed to cover its own workers, will it manage to pay for a private scheme?” Mr Odege asked.
He also expressed concern that in the ongoing transition from NHIF to the Social Health Insurance Fund (SHIF), there is no provision for the comprehensive group life for the country’s civil servants.
“Civil Servants were comfortable in NHIF and the provision of the comprehensive group life. Now the government has failed to pay NHIF so that they can continue to offer these services to workers,” Mr Odege said.
If the civil servants make good their threat, it will provide a headache to the government as teachers also insist on not returning to school from Monday.
The government will have a lot of fire-fighting to do in the midst of tough austerity measures announced by President Ruto following the rejection of the Finance Bill, 2024.
