Africa-Press – Kenya. The Salaries and Remuneration Commission (SRC) has approved a revised salary and leave allowance structure for civil servants in the national government as part of the fourth remuneration review cycle for 2025-2029.
The decision, made during the Commission’s 691st meeting on 19th December 2025, will be implemented retroactively from 1st July 2025 at a projected cost of Sh 2.065 billion for the 2025/2026 financial year.
The move comes after a series of consultations with the State Department for Public Service and Human Capital Development, which submitted guidelines for negotiations earlier this year.
In a circular issued by acting SRC CEO, Margaret Njoka, the Commission outlined the approved basic salary structure and leave allowances, which cover grades from CSG1 to CSG17 and other designated job groups.
A key feature of the new structure is the reorganisation of house allowances into three clusters to reflect variations in the cost of living across the country.
Cluster 1 covers Nairobi, the capital city, where living costs are highest. Cluster 2 includes major cities such as Mombasa, Kisumu, and Nakuru, as well as key municipalities like Nyeri, Eldoret, Thika, Kisii, Malindi, and Kitale. Cluster 3 applies to all other towns and rural areas.
Civil servants in Nairobi are therefore expected to benefit the most from the increased house allowances, while staff in smaller towns and rural areas will receive comparatively lower rates.
Under the new framework, higher-grade employees, including those in CSG4, will earn basic salaries ranging between Sh185,690 and Sh396,130, with house allowances reaching up to Sh140,600 for Nairobi residents.
Lower-grade employees, such as those in CSG15, will see salaries rise to between Sh21,120 and Sh26,250, accompanied by house allowances of up to Sh4,500.
The structure is designed to balance equity with the cost-of-living differences across regions.
The Commission also introduced a consolidated Salary Market Adjustment (SMA), which merges entertainment, extraneous, and domestic servant allowances into a single adjustment.
The SMA is intended to align civil service salaries with market realities, ensuring that public sector workers remain competitive while adhering to constitutional and statutory principles.
This consolidation also simplifies administration and reduces discrepancies that previously existed in fragmented allowance structures.
SRC emphasised that the salary structure for unionisable staff will be implemented through the Collective Bargaining Negotiations process, allowing trade unions and employers to engage on specific terms within the broader framework approved by the Commission.
The circular further stated that this guidance supersedes all previous advice on civil service remuneration for the items covered, making it the definitive framework for implementation.
Njoka lauded the continued collaboration of key government offices, including the National Treasury, Office of the Auditor General, the Controller of Budget, and the Public Service Commission.
“The Commission appreciates the continued cooperation and support as we discharge our respective mandates,” she noted in the circular, underlining the shared responsibility of ensuring smooth execution of the new remuneration structure.
The review is a significant step in ensuring that civil service salaries reflect both market conditions and statutory requirements.
It also provides a more transparent and consistent approach to allowances, which had in the past been subject to ad hoc adjustments.
The adjustments will not only improve morale among civil servants but also enhance productivity by reducing financial pressures, particularly for staff stationed in high-cost urban centers.
The implementation of the first phase of the fourth remuneration review cycle demonstrates the government’s commitment to modernising civil service compensation, improving equity, and aligning public sector wages with national economic realities.
The SRC has indicated that subsequent phases will continue to refine the salary structure, ensuring that the pay and benefits framework remains competitive and sustainable over the coming years.
COTU Secretary General Francis Atwol thanked the civil servants union and president William Ruto for the intervention.
