Public servants are earning more, but their pay is still under pressure – SRC

Kenya's public servants earn more now than a decade ago, yet rising living costs and slow wage growth are putting their pay under strain, according to new data from the Salaries and Remuneration Commission (SRC). Between 2015/16 and 2024/25, the average monthly gross salary for a public-sector employee grew by 29 per cent, from Ksh56,986 to Ksh73,732.

However, the pace of this increase has not matched the rise in salary growth, which only went up by 2.71 per cent during the same period. While nominal pay has improved, the real value of public servants' wages is eroding due to persistent inflation, which has risen to 4.5 per cent in Q2 2025/26, up from 2.8 per cent a year earlier.

The Consumer Price Index also climbed from 146.84 to 148.02 over the same quarter, highlighting the impact on purchasing power. Despite the growing public wage bill, the wage bill-to-ordinary-revenue ratio has declined from 54.77 per cent in 2020/21 to 40.64 per cent in 2024/25, though it still exceeds the 35 per cent benchmark.

Public servants face the challenge of securing competitive remuneration to maintain their living standards and retain skilled workers, while also contending with the escalating pressure on government finances. The SRC received numerous requests for adjustments in allowances, benefits, and salary structures, underscoring the complexity of balancing the need for higher pay with fiscal sustainability.

The core issue now is whether public-sector pay is rising swiftly enough to preserve purchasing power, amidst the competing demands of cost of living, workforce expansion, and the requirement for higher compensation.