SRC suspends revised county pay structure as 42 counties breach wage bill threshold

• SRC has suspended revised remuneration structures for selected county officials after 42 counties breached the 35 per cent wage bill benchmark.
• Counties have spent Sh171.36 billion on personnel emoluments, pushing the average wage-bill-to-revenue ratio to 44.12 per cent.
• Only five counties have remained within the benchmark, with Homa Bay and Taita-Taveta recording the highest ratios at 63 per cent each.

The Salaries and Remuneration Commission (SRC) has suspended revised remuneration structures for selected county officials after 42 of the 47 counties breached the 35 per cent wage-bill-to-revenue benchmark.(Education News Kenya — https://educationnews.co.ke/news/src-suspends-revised-county-pay-structure-as-42-counties-breach-wage-bill-threshold)

Counties spent Sh171.36 billion on personnel emoluments against Sh386.59 billion in revenue during the nine months to June 2026, pushing the average wage-bill-to-revenue ratio to 44.12 per cent.

Only five counties remained within the benchmark: Tana River at 27 per cent, Kwale and Nakuru at 30 per cent each, Uasin Gishu at 31 per cent and Kirinyaga at 32 per cent.

At the upper end, Homa Bay and Taita-Taveta each recorded 63 per cent, while Machakos stood at 58 per cent. Homa Bay spent about Sh4.55 billion on staff compensation against revenue of Sh7.26 billion, while Taita-Taveta spent about Sh3.19 billion against Sh5.55 billion in revenue.

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SRC has suspended implementation of revised remuneration and benefits structures for State officers in county executives, members of County Public Service Boards, County Secretaries and County Attorneys.

The suspension targets specified remuneration structures under the Fourth Remuneration and Benefits Review Cycle covering 2025/26 to 2028/29, with the Commission citing concerns over affordability and sustainability.

Further consultations involving SRC, the Council of Governors, Commission on Revenue Allocation and National Treasury are expected to shape the next steps.

The 35 per cent benchmark is a wage-bill-to-revenue ratio under the Public Finance Management framework, which requires county governments not to spend more than 35 per cent of their total revenue on wages and benefits.

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SRC says the objective is to make the public wage bill affordable and sustainable and to release resources for development and other government priorities. Its strategic plan targets maintaining the wage-bill-to-ordinary-revenue ratio at 35 per cent, with June 2028 set as the target for achieving the ratio following the national wage-bill conference.

For county employees including ECDE teachers, nurses, clinical officers and other cadres, the breach does not mean an automatic salary cut. Existing salaries do not automatically disappear because a county exceeds the benchmark. However, the wage-bill pressure could affect future recruitment, promotions and implementation of new remuneration structures depending on fiscal capacity.

By Hillary Muhalya

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