NAIROBI, Kenya, July 3 – Public Service Cabinet Secretary Moses Kuria has declined to implement the gazette notice on salary increases for state officers, citing the need for fiscal responsibility in the wake of violent protests against the Finance Bill 2024.
In a public notice, CS Kuria stated that while the Salaries and Remuneration Commission (SRC) has the authority to set and regularly review the remuneration and benefits of all state officers, the current economic climate necessitates a different approach.
The Kenyan Gazette Notice No. 177 of August 9, 2023, outlined a new salary structure set to be implemented by July 1, 2024. However, Kuria referred to the resolution of the third National Wage Bill Conference held from April 15 to 17, 2024, which aimed to reduce the wage bill to 35 percent of revenue, as stipulated in the Public Finance Management (PFM) Act of 2012, and the prevailing austerity measures announced by President William Ruto following the withdrawal of the Finance Bill 2024.
“Given the resolution from the National Wage Bill Conference and the austerity measures announced by His Excellency the President, it is clear that implementing the new salary structure at this time is unsustainable,” Kuria stated.
The Finance Bill 2024, which proposed increased taxation to address the country’s debt and revenue shortfalls, has been a flashpoint for nationwide protests. The bill’s provisions included various tax hikes that many Kenyans felt would exacerbate the already high cost of living. As a result, protests erupted across the country, with demonstrators expressing their frustration and calling for the bill’s rejection.
The protests quickly turned violent, with major cities such as Nairobi, Mombasa, Nakuru, and Kisumu experiencing widespread vandalism, looting, and clashes with security forces. Over the course of the protests, more than 40 people lost their lives, and numerous businesses were destroyed or heavily damaged. The Kenya National Commission on Human Rights (KNCHR) reported that 41 people had been killed and 361 injured during the demonstrations, condemning the police’s use of force as “excessive and disproportionate.” The violence also resulted in significant property destruction, including the burning of Parliament and other critical government infrastructure.
In response to the widespread opposition and the escalating unrest, President Ruto announced the withdrawal of the Finance Bill 2024. Despite this, the economic challenges that prompted the bill’s introduction remain. The protests have highlighted broader issues of fiscal management and economic equity in Kenya.
Kuria emphasized that it is not sustainable for 900,000 public servants at both national and county levels to consume Sh1.1 trillion annually, equivalent to 47 percent of national revenues, while the remaining 54 million Kenyans share the rest. “I believe this is more of a moral and ethical issue than an economic one,” he said.
According to the PFM Act of 2012, Kenya’s public wage bill should not exceed 35 percent of the national budget. Kuria explained that the current trajectory indicates a continual rise in expenditure on salaries, allowances, and benefits for public servants, placing immense strain on national finances. “This is not a challenge we can afford to ignore,” he insisted.
Source: capitalfm
