- Organisations should commit to promoting decent work within the Sustainable Development Goals and the 2030 agenda offers a unique perspective on these national efforts.
- SRC, mandated under Article 230 of the Constitution of Kenya 2010, has a pivotal role in setting and regularly reviewing the remuneration of all state officers and advising on the compensation of all public officers.
Can the management of a public sector wage bill align with the broader goals of decent work and sustainable development?
In Kenya, where the Salaries and Remuneration Commission (SRC) strives to balance fiscal discipline with fair compensation, this question reveals complex challenges and opportunities.
Organisations should commit to promoting decent work within the Sustainable Development Goals and the 2030 agenda offers a unique perspective on these national efforts.
SRC, mandated under Article 230 of the Constitution of Kenya 2010, has a pivotal role in setting and regularly reviewing the remuneration of all state officers and advising on the compensation of all public officers.
The SRC’s framework, grounded in principles such as affordability, sustainability, fairness, and transparency, aims to manage the public sector wage bill while ensuring the attraction and retention of the necessary skills to foster productivity and performance.
However, the effectiveness of these efforts is subject to ongoing scrutiny, given the complexities and challenges facing Kenya’s public sector, including issues such as wage bill sustainability and the prevalence of ghost workers.
Organisations should have their mission aligned with the Sustainable Development Goals and the broader 2030 agenda to ensure the notion of decent work resonates deeply.
Decent work implies job opportunities that are not only productive and generate a fair income but also provide job security and social protection for families.
It encapsulates opportunities for personal development, social integration, freedom of association, participation in decision-making processes, and equality in employment.
The challenges highlighted by the SRC’s handling of the public sector wage bill, particularly the fiscal sustainability issues and the impact of ghost workers, mirror the challenges we see in broader labour markets.
The wage bill's growth, consuming a significant proportion of national revenue—estimated at 48.1 per cent of ordinary revenue and 7.9 per cent of GDP by the end of the fiscal year 2018/2019—signals a pressing need for more robust management practices.
This scenario not only stresses public finances but also limits the government's capacity to invest in essential services and development priorities, thereby impacting decent work initiatives.
Moreover, the pervasive issue of ghost workers in various counties not only strains fiscal resources but also undermines trust and accountability in public administration.
For instance, a report by one of the counties' Public Service Boards, according to the Public Financial Management Reforms Secretariat, showed about 426 employees could not be traced at their duty stations during an audit.
Ghost workers reportedly cost the county approximately Sh32 million monthly due to non-existent employees on payrolls.
These issues can be addressed through comprehensive reforms and robust governance mechanisms such as the proposal by the National Treasury for a unified payroll system for both national and county government employees.
This consolidated approach with regular system audits can be instrumental in overcoming the challenges associated with fraudulent employment records.
As a Human Resource Practitioner deeply invested in fostering decent work, it is essential to recognize the importance of a sustainable wage policy not only for fiscal health but also as a crucial component of social justice and equity in employment.
Therefore, the SRC’s endeavours are integral to broader national efforts towards decent work, advocating for enhanced transparency, accountability, and inclusivity in public sector wage management.
While the SRC’s framework theoretically aligns with principles of fairness and sustainability, the practical challenges it faces underscore the need for a more integrated approach involving all stakeholders.
Evelyne Chepkoech (CHRP-K) is Regional Human Resource Officer, Solidaridad East & Central Africa