Kenyan Government Approves Civil Servants’ Pay Rise Backdated to July 2025
Kenyan civil servants are set to receive a salary increase beginning in early 2026, following the approval of new pay structures by the Salaries and Remuneration Commission (SRC), with the changes backdated to July 1, 2025.
The pay rise applies to national government employees and forms part of Phase I of the fourth remuneration and benefits review cycle covering the 2025–2029 period. The decision was reached during an SRC meeting held on December 19, 2025.
Details of the approval were outlined in a circular shared by Central Organisation of Trade Unions (COTU) Secretary General Francis Atwoli, which confirmed that the SRC had sanctioned adjustments to both basic salaries and leave allowances across all civil service grades.
According to the circular addressed to Public Service Principal Secretary Jane Imbunya, the SRC acted following formal correspondence from the Ministry of Public Service and Human Capital Development earlier in the year.
“Reference is made to your letters Ref. No. MPS&HCD.12 dated September 2, 2025, on the guidelines for negotiations on the fourth remuneration and benefits review cycle 2025–2029, and Ref. No. MPSP&DM/9/1 dated December 11, 2025, on the above subject,” the circular read in part.
The SRC confirmed that the new basic salary structure and revised leave allowance will be implemented with effect from July 1, 2025, at a total cost of Ksh 2.06 billion for the 2025/2026 financial year.
The revised pay structure applies to civil servants across grades CSG1 to CSG17, as well as other designated job groups, with allowances calculated based on duty station and job classification.
As part of the reforms, the SRC has introduced a Salary Market Adjustment (SMA), which consolidates previously separate benefits — including entertainment, domestic servant, and extraneous allowances — into a single adjustment aimed at simplifying administration and aligning public sector pay with market conditions.
Housing allowances have also been revised and categorised into three clusters based on location.
- Cluster One covers Nairobi,
- Cluster Two includes major cities such as Mombasa, Kisumu, and Nakuru, along with key municipalities including Nyeri, Eldoret, Thika, Kisii, Malindi, and Kitale,
- Cluster Three applies to all other towns and rural areas.
Under the new framework, civil servants stationed in Nairobi are expected to benefit most from the increased housing allowance, reflecting the capital’s higher cost of living. Employees in smaller towns and rural regions will receive comparatively lower rates.
By way of illustration, senior officers in grades such as CSG4 will earn a basic salary ranging from Ksh 185,690 to Ksh 396,130, with Nairobi-based staff eligible for house allowances of up to Ksh 140,600.
Meanwhile, lower-grade employees, including those in CSG15, will see their basic pay rise to between Ksh 21,120 and Ksh 26,250, alongside house allowances of up to Ksh 4,500, depending on location.
The SRC said the Salary Market Adjustment is designed to ensure that public service pay remains competitive while complying with constitutional and statutory requirements.
The commission noted that the consolidation of fragmented allowances would improve transparency, efficiency, and ease of administration across government payrolls.
Leave allowances have also been revised under the new framework, with the aim of compensating staff for accumulated leave and providing additional financial support during periods away from work.
For unionisable staff, the SRC clarified that pay adjustments will be implemented through Collective Bargaining Agreement (CBA) negotiations, allowing trade unions and staff representatives to participate in finalising the changes.
The commission has directed all government ministries, departments, and agencies to implement the approved salaries and allowances without delay, including settling all arrears backdated to July 1, 2025.
The latest pay rise marks the first phase of the 2025–2029 remuneration review cycle, with the SRC indicating that further reviews and adjustments will follow in subsequent phases to ensure civil service pay remains fair, competitive, and responsive to prevailing economic conditions.
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Kenyan Government Approves Civil Servants’ Pay Rise Backdated to July 2025