Wage bill to hit Sh650 billion in 2018, Sarah Serem says as term ends

Salaries and Remuneration Commission chairperson Sarah Serem.
Salaries and Remuneration Commission chairperson Sarah Serem.

Kenya's annual wage bill is expected to rise to Sh650 billion by the end of 2018, the Salaries and Remuneration Commission has said.

Sarah Serem, whose team is preparing to leave office by December 15, reported on Tuesday that this is equivalent to an annual 11 per cent increase.

She said the bill had increased to Sh627 billion from

Sh465 billion in 2012/13 and is expected to rise to Sh650 billion by 2018.

The chairperson noted the medium-term target is below seven per cent of the GDP but that it currently stands at nine per cent, which is still high.

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Serem said the commission has delivered on its mandate of job evaluation of public servants despite "devastating challenges'.

She reported that for the last six years, they have managed to develop a remuneration and benefits policy to ensure for fair pay consideration.

"The broad objective is to promote a wage bill that is affordable and sustainable. We can confidently say that through this policy, we have managed to temporarily freeze a wage increase."

She spoke at a luncheon to mark the end of their six-year term.

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Serem further said SRC has adopted a four-year review cycle for wages, resulting in stability.

"This has reduced the wage bill despite the setting up of many offices with the advent of devolution" Serem said.

"We hope the review we made will provide a rational basis for equitable remuneration in the days to come and that everyone will enjoy the fruits of the review."

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