How SRC saved Sh3.8 billion in quarter 1

The Salaries and Remuneration Commission saved Kenyans the burden of footing a wage bill worth Sh3.8 billion comprising allowances and benefits, CBA reviews, bonuses and salary reviews in the first quarter of the current financial year.

In its First Quarter Wage Bill Bulletin covering the period July to September 2024, for the 2024/2025 financial year, SRC says it received 88 requests from public institutions valued at Sh10.35 billion but only approved requests worth Sh6.45 billion (62.35 per cent).

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This measure resulted in a saving of Sh3.8 billion for the public service during the period under review.

"Of the 88 requests, 13 were on CBA reviews (15 per cent); 62 on allowances and benefits (70 per cent), four on bonus requests (5 per cent) and nine on job evaluation and salary reviews (10 per cent)," SRC said.

Comparatively, the commission said requests by public service institutions for the first quarter of the 2024-25 financial year stood at Sh10,352.06 billion, a huge drop from the Sh39,801.57 billion received during the same period in the 2023-24 financial year.

SRC said county government expenditure on Personnel Emoluments (PE) in the first quarter of 2024-25 was estimated at Sh40.47 billion, slightly lower than the Sh41.79 billion recorded in the first quarter of 2023-24 financial year.

The commission said even though the counties' PE stood at 40.64 per cent, down from 42.09 per cent as a proportion of total revenue, the amount was still above the 35 per cent threshold set in the Public Finance Management (PFM) Regulations, 2015.

However, as a proportion of total expenditure, SRC said the PE decreased from 69.5 per cent in the first quarter, to 61.9 per cent in the second quarter, but this, it noted, was still above the legal threshold.

"Only six counties - Nakuru, Kwale, Busia, Tana River, Narok, and Kilifi - complied with PFM Act, 2015, threshold of 35 per cent PE to revenue ratio," SRC said.

The commission said coiunties' PE is projected to increase from Sh38.69 billion in the first quarter, to Sh52.16 billion in the second quarter of 2024-25, representing a 34.8 per cent growth.

On the other hand, the national government PE expenditure in the first quarter of 2024-25 was estimated at Sh111.09 billion, compared to Sh120.99 billion in the same period in 2023-24.

The PE, as a share of total expenditure (excluding national security and Consolidated Fund Services), declined from 23.53 per cent to 19.72 per cent," SRC said in its analysis of public wage bill trends across the two levels of government.

"The Controller of Budget report shows that the national government PE is projected to rise from Sh170.29 billion in Q2 of FY 2023/2024 to Sh212.53 billion in Q2 of 2024-25," SRC said.

Despite the growth, the comission said the national government PE to total revenue ratio is projected to decrease from 31.7 per cent to 25.7 per cent over the same period, remaining within the recommended threshold.

Regarding wage employment and payment in the public service, SRC said the largest employer in public service, the Teachers Service Commission (TSC), registered an employee growth of 8.72 per cent in 2023, while county governments registered a growth of 1.89 per cent to 221,400 employees.

It said employment in parastatal bodies and State corporations controlled by the government grew by 1.12 per cent and 1.04 per cent in 2023, respectively, while employment in ministries and other extra-budgetary institutions registered an increase of 3.36 per cent.