Kenya’s government has approved salary and allowance increases for civil servants in the 2025/2026 financial year, as authorities seek to adjust public sector compensation amid rising living costs and fiscal pressures.
The Salaries and Remuneration Commission (SRC), the constitutional body responsible for setting and reviewing pay for state officers and public servants, confirmed the revised salary structure, according to a statement by the Ministry of Public Service and Human Capital Development.
Public Service Principal Secretary Jane Imbunya announced the decision on Saturday, saying the adjustments will take effect during the 2025/2026 fiscal year.
“The SRC has reviewed and approved the salary structure for civil servants,” Imbunya said, adding that the changes cover both basic pay and selected allowances across the public service.
The move affects thousands of government employees and comes at a time when Kenya is grappling with elevated inflation, higher taxes, and pressure to contain its widening budget deficit. Public sector wages account for a significant share of government expenditure.
According to the SRC, the revised structure applies to non-unionised staff, while salary adjustments for unionisable employees will be implemented through collective bargaining agreements negotiated between unions and the government, in line with existing labour laws.
“The salary structure for unionisable staff shall be implemented through the collective bargaining negotiation process,” the commission said, underscoring that talks with labour unions will determine the final outcomes for affected workers.
While authorities did not immediately disclose the exact percentage increase or the total cost to the exchequer, the SRC said the review was conducted within the framework of Kenya’s public finance laws, which require pay adjustments to be sustainable and consistent with broader economic conditions.
The pay review follows persistent calls from public sector workers for wage adjustments to cushion the impact of higher food, fuel, and housing costs. Kenya’s inflation has eased from earlier peaks but remains a concern for households, particularly in urban areas.
In recent years, the government has faced repeated industrial action threats from teachers, healthcare workers, and other civil servants over pay disputes, delayed allowances, and working conditions. Officials say the latest review aims to balance worker welfare with fiscal discipline.
Kenya has been implementing austerity measures under its medium-term fiscal consolidation plan, which includes cutting non-essential spending, broadening the tax base, and restructuring public debt. International lenders, including the International Monetary Fund, have urged Nairobi to rein in recurrent expenditure, including the wage bill.
The SRC reiterated that salary reviews are guided by principles of equity, affordability, and productivity, as mandated by the constitution. It said future adjustments would continue to depend on economic performance, revenue mobilisation, and compliance with budget ceilings approved by parliament.
The 2025/2026 financial year begins on July 1, 2025, and runs until June 30, 2026.
