In response to emerging fiscal constraints and budget cuts following the withdrawal of the Finance Bill, 2024, the Salaries and Remuneration Commission (SRC) has announced a freeze on the salary review for all public officers for the financial year 2024/2025.
This decision was made after careful consultation with the National Treasury and is aimed at ensuring the fiscal sustainability of the public compensation bill, as outlined in Article 230(5) of the Constitution of Kenya, 2010.
The freeze will affect the implementation of the advised remuneration and benefits for public officers, which were originally set to take effect in July 2024. The SRC emphasized that there is no allocated budget for these adjustments in the current financial year, prompting the deferment until further notice, dependent on the availability of funds.
Despite the freeze, annual salary notch adjustments within existing salary structures will continue as advised by the SRC, provided they fall within the allocated budget. However, no additional funding will be allocated for the implementation of job evaluation results in the financial year 2024/2025.
Public service institutions with Collective Bargaining Agreements (CBA) impacted by this freeze are advised to engage with the respective trade unions to address the implications.
The SRC will keep monitoring the financial situation and may consider a review of this decision if and when funding becomes available, as advised by the National Treasury.
Earlier, on 3 July 2024, the SRC, in collaboration with the National Treasury, had already announced a freeze on the upward salary review for all State officers for the financial year 2024/2025. This move was influenced by economic realities, budget reductions, and existing contractual commitments, aiming to maintain the affordability and fiscal sustainability of the public wage bill.
The Salaries and Remuneration Commission, established under Chapter 12, Article 230 of the Constitution of Kenya, 2010, is responsible for setting and regularly reviewing the remuneration and benefits of all State officers and advising the national and county governments on the remuneration and benefits of all other public officers.
