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HomeEDUCATIONSRC Saves Taxpayers Ksh2.8 Billion in Approved Requests, Thwarts Dubious Salary Requests

SRC Saves Taxpayers Ksh2.8 Billion in Approved Requests, Thwarts Dubious Salary Requests

SRC Saves Taxpayers Ksh2.8 Billion in Approved Requests, Thwarts Dubious Salary Requests

SRC Saves Taxpayers Ksh2.8 Billion in Approved Requests, Thwarts Dubious Salary Requests

The Salaries and Remuneration Commission (SRC) recently announced that it has approved requests worth Ksh411 million from public institutions, out of a total of 65 requests amounting to Ksh3.2 billion.

This intervention by the SRC resulted in substantial savings of Ksh2.8 billion, equivalent to 12.7 percent of the total requests.

According to a press statement issued by the SRC, public institutions submitted 65 requests between January and March 2023 for the financial year 2022-2023.

It is worth noting that the cumulative cost of these requests for the first three quarters of FY 2022/2023 amounts to Ksh5.9 billion, which is significantly lower than the Ksh18.8 billion requested during the same period in FY 2021/2022.

County Government Expenditure:

The SRC highlighted that the expenditure on Personnel Emoluments (PE) in county governments continues to exceed the Public Finance Management (PFM) threshold.

The Office of Controller of Budget (OCOB) projected that the expenditure on PE in county governments would rise from Ksh90.4 billion in the second quarter to Ksh126.02 billion in the third quarter of FY 2022/2023.

Similarly, the expenditure on PE in the national government was projected to increase from Ksh127.21 billion in the second quarter to Ksh190.82 billion in the third quarter.

The SRC provided insights into the wage bill trends, indicating that the wage bill to nominal Gross Domestic Product (GDP) ratio was 7.91 percent in FY 2016/2017, which increased to 8.82 percent in FY 2019/2020.

However, this ratio decreased to 8.25 percent in FY 2020/2021 and was projected to decrease further to 7.73 percent in FY 2021/2022.

The SRC aims to bring this ratio closer to the average for developing countries at around 7.5 percent and the internationally desirable level of approximately 7 percent.

Gross Domestic Product Growth:

The real Gross Domestic Product (GDP) of Kenya experienced a growth rate of 4.8 percent in 2022, compared to a revised growth rate of 7.6 percent in 2021.

Looking ahead, the SRC expects the country’s economy to expand by 6.1 percent in 2023, maintaining this positive momentum over the medium term.

According to the SRC, the Economic Survey 2023 revealed that Kenya’s total workforce currently stands at 12 million.

Out of this, 2 million individuals are part of the formal sector, including government civil service, parastatals, and private sector employees.

The number of public service employees increased from 774,700 in 2015/2016 to 923,100 in FY 2020/2021.

Furthermore, it is projected that the public service labor force will continue to grow at an average rate of 4.34 percent, reaching 963,200 employees in FY 2021/2022.

SRC Saves Taxpayers Ksh2.8 Billion in Approved Requests, Thwarts Dubious Salary Requests

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