The next President, his deputy, Cabinet Secretaries, Speakers, Senators, Governors, Members of Parliament and Members of County Assemblies will earn considerably less after the Salaries and Remuneration Commission (SRC) slashed their emoluments yesterday.
SRC adopted new wage guidelines for top State officials, in which it abolished sitting allowances and mileage reimbursable to lawmakers in a move to tame ballooning wage bill.
Instead, Governors, MPs, Senators and MCAs will get fixed transport allowances based on a zoning system that factors area cover of a constituency. In the revised pay structure effective after the elections, the President and his deputy will take home Sh1.4 million down from Sh1.65 million and Sh1.2 million, down from Sh1.4 million respectively.
Cabinet secretaries will earn Sh924,000 from Sh1million whereas Principal Secretaries will take home Sh765,188 down from Sh874,5000. Salaries of legislators in both the Senate and the National Assembly have also been adjusted downwards to Sh621,250 from Sh710,000.
Leaders of majority and minority will earn Sh765,188 from Sh1 million while salaries of Speakers of both Houses has been reduced to Sh1.1 million from Sh1.3 million.
MCAs will now take home Sh144, 375 down from Sh165, 000, while Speakers of the County Assembly and County Executive Committee will earn Sh259,875 from the current Sh350,000.
Cumulatively, the government stands to save nearly Sh9 billion if the reviewed salary structure is implemented to the letter. SRC chairperson Sarah Serem said the new changes were pegged on a salary survey in countries of comparable GDP levels, in a bid to eliminate disparities in the pay system.
She said it focused on the principles that are commonly used to determine the remuneration and benefits structures. “Further, the need to reduce disparities in the remuneration levels both vertically and horizontally was taken into consideration,” she explained.
SRC has also scrapped special parliamentary allowance, siting and reimbursement mileage allowance as well as special responsibility allowance. Governors and their deputies’ allowances have also been abolished including sitting allowances for plenary sessions as well as the mileage allowance. In the new pay regime, SRC has abolished car grants for MPs.
Instead, MPs will, receive an annual medical cover of Sh10 million for in-patient, out-patient Sh300, 000, maternity Sh150, 000, dental and optical of Sh75, 000 each and their families.
They will also be entitled to a car loan of up to Sh7 million, repayable with annual interest of 3 per cent as well as Sh20 million mortgage of same interest. MPs, notorious for manipulating weak systems to pocket millions on mileage will now have a fixed mileage pay not exceeding Sh800,000.
MPs will earn fixed mileage allowances based on zones, with those in proximity to Nairobi earning less than their counterparts in far-lung areas.
SRC has classified zones A, B, C, D and E representing maximum return distance (per kilometre) of 750km, 1, 000km, 1, 250km and 1, 500 and above. Those in the aforementioned zones will earn Sh266,663, Sh355,550, Sh444,438, Sh533,325 and Sh738,833 for zones A, B, C, D and E, respectively.