SRC Unveils Major Salary Shake-Up as Future Pay Rises for Public Workers Tied to Performance and Cost of Living
Kenya’s public servants are set to face a major shift in how their salaries are reviewed after the Salaries and Remuneration Commission (SRC) unveiled new regulations linking future pay increases to economic performance, productivity, affordability and the cost of living.
The changes are contained in the SRC (Remuneration and Benefits of State and Other Public Officers) Regulations, 2026, which were published on Friday, July 3. The new framework introduces a more structured approach to salary reviews, with the Commission stating that remuneration adjustments will no longer be automatic but will instead depend on a range of economic and institutional factors.
Under the regulations, salary and benefits reviews for all government employees will now be conducted once every four years to align with Kenya’s national budgeting and planning cycle.
However, the Commission has retained the authority to carry out special salary reviews whenever exceptional circumstances arise and immediate intervention is deemed necessary.
According to the regulations, future salary adjustments will be guided by several considerations, including the country’s overall economic performance, the affordability of proposed wage increases, labour market trends, productivity levels, job evaluations and the sustainability of the public wage bill.
The Commission also noted that the cost of living and the financial capacity of public institutions to implement salary increases will be key considerations before any adjustments are approved.
“The Commission shall review remuneration and benefits taking into account economic performance, affordability, labour market dynamics, productivity, job evaluation and the cost of living,” the regulations state.
In another significant reform, all public institutions and organisations will be required to submit detailed information on the salaries and benefits of their employees whenever a remuneration review is scheduled. The requirement is intended to provide the Commission with up-to-date data before making recommendations on pay adjustments.
The new framework also places greater emphasis on comprehensive job evaluations across the public service. According to SRC, these assessments will determine the relative value of different positions and help ensure employees performing work of equal value receive equal pay.
The Commission said job evaluations will be conducted whenever a new public institution is established, when an organisation’s mandate changes, when new positions are created or when existing responsibilities are significantly altered.
Performance has also been formally incorporated into the salary review process, marking one of the most notable changes introduced by the regulations.
Under the new rules, SRC will assess whether institutions have met their performance targets, whether they possess the financial capacity to support higher wages and whether proposed salary adjustments are consistent with prevailing government policies before recommending any pay increase.
The regulations signal a broader shift towards performance-based remuneration in Kenya’s public sector as the government seeks to balance fair compensation for workers with fiscal discipline and the long-term sustainability of the national wage bill.
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