The government is taking significant steps towards linking civil servant salaries with productivity and performance, as part of a broader strategy to reduce the ballooning wage bill.
The ambitious initiative is being led by the Salaries and Remuneration Commission (SRC), in collaboration with the Ministry of Public Service and Human Capital Development, and the Office of the Chief of Staff and Head of Public Service.
The move comes as the government seeks to rein in public spending and address the rising cost of public sector wages.
As of the latest data, the wage bill stands at 43 per cent of the government’s total expenditure, a reduction from 54 per cent in 2017.
However, SRC Commissioner Mohammed Aden, who chairs the Productivity and Performance Committee tasked with overseeing the project, stated that the government has already made attempts to cut the wage bill by freezing hiring and reducing employee benefits and allowances.
“However, the challenge remains as the government continues to hire key personnel, such as teachers, police officers, and military staff,” he said.
Aden emphasised that a more sustainable solution lies in enhancing productivity at both the individual and institutional levels.
Under the new programme, employees across government ministries, departments, and agencies (MDAs) will be given clear performance targets. Those who fail to meet these goals will be placed under a Performance Improvement Plan (PIP) for a period of six to twelve months. If there is no improvement after the designated time, disciplinary action will be taken, including potential termination of employment.
Aden emphasised the importance of productivity as a central pillar of this reform. "The only way to tackle the situation is to increase productivity of employees as individuals and institutions," he said in an interview with The Star.
In addition to setting targets, the Ministry of Labour is working on establishing Key Performance Indicators (KPIs) that will be used to measure the effectiveness of civil servants.
The SRC, in turn, will develop frameworks for rewarding and recognising employees who consistently meet or exceed performance expectations.
Felix Koskei, the Head of Public Service, has already instructed MDAs to incorporate productivity-impacting indicators into their performance contracts.
These new metrics will go beyond traditional categories like labour and operations and will focus on areas such as cost optimisation, service quality, timeliness, employee morale, safety, and overall productivity.
Koskei has further directed the National Productivity and Competitiveness Centre (NPCC) to develop templates that MDAs can adopt to assess productivity and provide technical support in improving performance across the public sector.
The SRC’s efforts are part of a broader strategy to manage the public wage bill sustainably while ensuring fairness and equity in compensation. The commission's strategic plan, which spans from 2013 to 2028, aims to harmonise remuneration structures, promote wage bill sustainability, and implement performance-based pay.
The first phase of the SRC’s strategic plan, covering the period 2013-2018, focused on establishing foundational systems for job evaluation, remuneration setting, and advisory services.
The second phase, which runs from 2018 to 2024, places a greater emphasis on harmonising pay structures, adopting productivity-based compensation models, and strengthening stakeholder engagement.
Aden noted that the third phase of the plan, which will begin in 2024, will continue to focus on managing the wage bill and ensuring that compensation is linked to the value employees bring to their respective roles.
With these reforms, the SRC is aiming to achieve a sustainable and equitable wage bill that balances the need for fair compensation with the demands of fiscal responsibility.
The commission is also seeking to address disparities in public service pay and to recognise the importance of performance and productivity in achieving greater efficiency across government institutions.
