SRC Reveals 247 Highest Allowances in Ruto’s Administration, Consume 48% of their Total Wages

SRC Reveals 247 Highest Allowances in Ruto’s Administration, Consume 48% of their Total Wages.

President William Ruto and his administration, along with other public servants, currently receive allowances comprising 48 percent of their total wages, according to SRC chairperson Lyn Mengich.

This marks the highest proportion of allowances received by public servants to date.

The Salaries and Remuneration Commission (SRC) disclosed in an official statement on their X page that public service allowances now constitute almost half of the wage bill.

A 2019 report by the SRC revealed that 247 different types of allowances are paid within the public service sector, a sharp increase compared to previous years.

Growth in Allowances Over Time

The rise in the number of allowances has been stark over the past two decades. In 1999, only 31 types of allowances were paid.

This number grew to 78 by 2006, 156 by 2014, and 247 by 2019. This substantial increase in allowances has contributed to what the SRC terms an “unsustainable wage structure,” as the significant proportion dedicated to allowances strains the public sector’s financial resources.

The wage bill in Kenya was estimated at Ksh1.17 trillion as of June 2024. In the financial year 2023/24, an additional Ksh24.8 billion was allocated to public servants’ salaries between July 2023 and March 2024.

According to SRC, a lack of standardization and control over allowances has exacerbated the wage bill, with inconsistencies across various institutions regarding justification, eligibility, and payment methods.

The SRC reported that many public service institutions have inconsistent criteria, rates, and payment methods for allowances.

These variations often lead to duplication and unsupported payments, resulting in significant financial losses. Some allowances, despite being abolished, continue to be paid, while new “mystery allowances” add further strain.

SRC’s Efforts to Reform Allowance Policies

To address these issues, the SRC is implementing several reforms. A key initiative is the development of an Allowances Policy Guideline, which seeks to streamline the management and administration of allowances.

This guideline aims to enhance transparency, accountability, equity, and fairness in compensating public servants.

Types of Allowances Provided

Currently, public servants receive various allowances, including:

• Remunerative Allowances: such as house and commuter allowances.
• Sitting Allowance: calculated on a daily rate.
• Specialty Allowances: including hardship, extraneous, domestic, and risk allowances, among others.

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With these policy changes, the SRC aims to ensure that Kenya’s public service wage bill remains both affordable and fiscally sustainable.

SRC Reveals 247 Highest Allowances in Ruto’s Administration, Consume 48% of their Total Wages.

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