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SRC unveils Sh9.67bn public wage management reforms

NAIROBI, Kenya, Oct 30 – The Salaries and Remuneration Commission (SRC) has unveiled a Sh9.67 billion five-year strategic plan covering 2025/26 to 2029/30, targeting efficiency, institutional reform, and data-driven decision-making within Kenya’s public remuneration framework.

The plan, to be rolled out in phases, will be financed through government allocations and external partnerships, providing a roadmap to align wage management systems with fiscal sustainability goals.

According to the document, Sh4.2 billion will be sourced from the Medium-Term Expenditure Framework (MTEF), leaving a Sh5.47 billion funding gap.

“To address the resource gap, SRC will pursue a hybrid resource mobilisation strategy combining government funding, development partner support, and private sector partnerships,” the report notes.

The Commission said it will intensify engagement with the National Treasury, Parliament, and oversight agencies to secure adequate allocations, while exploring Public-Private Partnerships (PPPs) and Government-to-Government (G2G) funding for capacity building, digital transformation, and enforcement programs.

Implementation costs will cover strategic activities under each Key Result Area (KRA), as well as administrative and monitoring functions.

“This projection provides a foundation for effective planning, resource allocation, and prioritisation of fundraising efforts across programmatic and thematic areas,” the report adds.

The rollout comes amid renewed calls to contain Kenya’s rising public sector wage bill, which SRC estimates consumes over 45 percent of total government revenue.

The Commission has been pushing for pay rationalisation and performance-linked compensation across all levels of government to enhance productivity, fairness, and fiscal discipline.

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