NAIROBI, Kenya, Dec 11 – The government will save Sh125 billion every financial year as a result of the scrapping out some allowances previously given to State officers.
The Salaries and Remuneration Commission (SRC) chairperson Sarah Serem said on Thursday that the public service had over 150 different types of allowances, both remunerative and facilitative.
To address this problem, she said the commission had decided to consolidate some of the allowances and abolish others that were not relevant.
“I think it’s time that we came out as Kenyans, as leaders, to look at our country so that when we are making demands it should be on the basis of affordability,” she stated.
The SRC boss said all this is being done for the purposes of equity and fairness and also to compensate for the cost of living.
Some of the allowances that have been reviewed so far are; housing allowance, hardship allowance, leave allowance and daily subsistence allowance.
“We are anticipating a situation where we will reduce the 150 by half but of importance is that there is more allowance that will account for over 100 percent of the basic salary. We all know the job is compensated through basic salary,” she stated.
“The new rates that the commission is giving today shall be the only allowances to be applied to both the public and State officers.”
Currently, remuneration and benefits for public servants is approximately 11 percent of the GDP or at least 52 percent of domestic revenue which is a threat to sustainable government expenditure, according to Serem.
(Story by Lysa Waithera)