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XINHUA NEWS SERVICE REPORTS FROM THE AFRICAN CONTINENT

 

State pay cuts to cushion Tax payers from inflationary pressures
by Christine Lagat NAIROBI (Xinhua) -- Kenya has announced a drastic salary cut for all cadres of state employees in a bid to tame a ballooning wage bill that is to blame for the sluggish economic growth.

Sarah Serem, Chairperson of Salaries and Remuneration Commission (SRC), said the pay cut for state officials will be accompanied by abolition of mileage and sitting allowances to cushion the Kenyan tax payers from inflationary pressures.

"The revised monthly salary for state employees factors critical issues like cost of living and the state of our economy.
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"It promotes the constitutional spirit of competitive remuneration and will enhance productivity among state officers," Serem told journalists in Nairobi.

Kenyan President Uhuru Kenyatta and his deputy William Ruto will be affected by the proposed salary cut that will be implemented from September to 2022.

According to the revised salary structure, Kenyatta will earn 10,400 U.S. dollars per month, down from 10,600 dollars, while his deputy will be earning 10,200 dollars, down from 10,400 dollars.

The pay cut will also affect cabinet secretaries, senior civil servants like lawmakers, county executives and ward representatives whose hefty perks had reportedly exerted huge pressure on public finances.

Serem revealed that cabinet secretaries who are mostly hired from the private sector will take home a monthly pay of 9,025 dollars down from 10,500 dollars while lawmakers will earn 6,020 dollars down from 7,010 dollars.

 

NAIROBI (Xinhua) -- Salaries and Remuneration Commission (SRC) Chairperson Sarah Serem [left] and SRC Vice Chairperson Daniel Ogutu address the press on state officials salary reviews, in Nairobi. XINHUA PHOTO - NYALWASH

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The salaries boss announced that mileage and sitting allowances for senior officials and lawmakers will be scrapped in a bid to slash the public wage bill by 35 percent and save the Kenyan exchequer 800 million dollars annually.

She added that Kenya has borrowed global best practices in its bid to tame the skyrocketing wage bill that has undermined economic growth and investments in poverty alleviation projects.

"We should strive towards being a producing country as opposed to being a consuming one," Serem remarked, adding that the government will critically examine the competence of civil servants before awarding them a salary hike.

             

 

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