NAIROBI, Kenya – Thousands of government workers may soon see improved take-home pay after the Salaries and Remuneration Commission (SRC) confirmed it is reviewing public sector salaries to align with the law on payroll deductions.
Appearing before the National Assembly’s Public Accounts Committee (PAC) on Thursday, SRC Chairperson Sammy Chepkwony said the commission is working to ensure full compliance with the “one-third basic pay rule,” a legal requirement under Section 19(3) of the Employment Act.
The law mandates that employees retain at least one-third of their basic salary after all statutory and voluntary deductions.
“Compliance with the one-third rule is a priority,” Chepkwony told MPs. “We are actively working to correct this through the fourth remuneration review cycle, which is already underway.”
His remarks follow a report by Auditor-General Nancy Gathungu, which flagged widespread violations of the rule across public institutions, warning that excessive deductions were pushing many civil servants into financial hardship.
MPs Marianne Kitany and Nabii Nabwera slammed the SRC for failing to act despite repeated audit warnings, accusing the commission of neglecting its mandate and allowing the problem to spiral.
“You have allowed deductions that are clearly illegal,” Nabwera said. “Public servants are left with next to nothing after payday, and you’re still reviewing.”
The situation has been exacerbated by new mandatory deductions introduced in 2024, including the Affordable Housing Levy and the Social Health Insurance Fund (SHIF), which replaced NHIF.
These deductions, at 1.5 per cent (housing) and 2.75 per cent (health insurance) of gross pay, have tipped many government employees past the legal limit for salary deductions.
The Public Service Commission’s own human resource policies reinforce the one-third rule, stating that workers must not be left with less than a third of their pay. Yet enforcement has remained lax, with no penalties for employers who breach the law.
In response to mounting pressure, Chepkwony said the SRC would assess all salary structures in the current review cycle and propose adjustments to bring them in line with the law.
The PAC has now tasked the commission with setting clear timelines for the review and issuing interim measures to prevent further violations.
“Civil servants should not bear the burden of unlawful deductions,” Kitany said. “SRC must act now, not later.”
If the proposed review results in actual policy changes, it could offer long-overdue financial relief to thousands of public workers weighed down by statutory levies, loans, and other deductions—many of which currently exceed legal limits.
