Treasury Cabinet Secretary Ukur Yatani directed ministries to allocate funds for wage increases in 2022.
Various ministries including education have implemented these instructions and have promised that teachers will now get 15% more of their salary from January 1, 2022.
Other ministries are now working round the clock to implement this directive at the earliest to help employees deal with the high cost of living due to the pandemic.
According to a circular by CS Yatani to Ministries, Departments and Agencies (MDAs), the Treasury allowed an increase in the salaries of civil servants at the cost of hiring new employees.
“To ensure that wage bills remain within medium-term targets, sector working groups should not allocate resources to new recruits, interns, casuals or upgrades, unless there is prior approval from the national exchequer.
However, the MDA should provide adequate resources for movement from one pay scale to another.
The Treasury has already started preparing the national budget for the fiscal year 2022/23.
CS Yatani will launch the 2022/23 and medium-term budget preparation process at the Kenyatta International Convention Center (KICC) on Thursday, 5 August.
The government had stopped wage hike in June citing non-performing economy due to Kovid-19.
The Wage and Remuneration Commission said that the two-year moratorium in wage hike will save the country Rs 82 billion.
The IMF had also announced that Kenya had committed to keeping civil service salaries unchanged after the fund’s board approved a new Sh250 billion loan.
“This will be accomplished through continued restraint in hiring and wage awards, including a four-year wage settlement that will come into force in the 2021/22 fiscal year and by improved wage bill management,” the IMF revealed.
However, the increase in the cost of living has eroded the purchasing power of the public servants.
According to a recent report by Business Daily, civil workers haven’t received a salary since 2017 and have relied on generous perks to boost their take-home pay, but the SRC intends to reduce the benefits.
Wilson Soshan, former general secretary of KNUT, recently remarked that stagnation in the same job group has resulted in many public servants including teachers, police officers and health practitioners receiving maximum wages within the job group.