The Salaries and Remuneration Commission (SRC) has reviewed requests from public institutions alongside employment trends in its First and Second Quarter Wage Bill Bulletins for the 2025/2026 financial year.
During the July–December 2025 period, SRC received a total of 192 requests from public institutions, with a combined estimated cost implication of Ksh 17.2 billion.
“The Salaries and Remuneration Commission (SRC) has released the First and Second Quarter Wage Bill Bulletins for the financial year (FY) 2025/2026 covering the period July–December 2025,” read part of the report.
The requests covered job evaluation and salary structures, allowances and benefits, collective bargaining negotiations, and productivity and performance initiatives.
SRC Rejects Ksh 3.7 Billion in Pay Demands as Govt Employees Surpass 1 Million
According to SRC, Ksh 13.5 billion was approved, while approximately Ksh 3.7 billion in proposals were rejected as part of efforts to control the public wage bill.
The commission also highlighted that most requests were for allowances and benefits, with 46 submissions totaling Ksh 78.47 million.
However, Ksh 41.66 million was the only amount approved, leaving 36.81 million requests unmet.
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The commission added that 84 requests related to allowances, benefits, Collective Bargaining Agreements (CBAs), and productivity incentives had an estimated cost of Ksh 9.93 billion.
The Collective Bargaining Agreements (CBAs) and bonus or reward-related submissions numbered 19, totaling Ksh 1.58 billion, of which Ksh 714.88 million was approved.
In the area of productivity and performance, 12 requests totaling Ksh 2.38 billion were submitted, with Ksh 1.55 billion approved by the commission.
Additionally, Job evaluation and salary structure requests received full approval, with all seven requests totaling Ksh 5.90 billion accepted.
Public Sector Hiring Rises Even as SRC Rejects Pay Demands
SRC further stated that wage employment in the public sector grew to 1.023 million in 2024.
As a result, the Teachers Service Commission (TSC) remains the largest public-sector employer, with 410,700 employees, while ministries and extra-budgetary institutions employ 236,700, and county governments employ 226,500.
Additionally, parastatal bodies and government-controlled corporations employed 148,000 individuals, contributing to the growth in the public sector.
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The commission also stated that the public wage bill remains concentrated in essential service sectors, with education, health, and security accounting for the highest expenditures.
According to SRC, Teachers consume over a third of the public wage bill, while ministries, extra-budgetary institutions, and parastatal bodies follow.
Elsewhere, County wage-bill-to-revenue ratios remain above the Public Finance Management (PFM) 35% threshold, with only six counties, including Nyandarua, Nakuru, Migori, Kilifi, Siaya, and Tana River, staying below this level.
