Commission Induction: Expounding the lengths and breaths of SRC

By Anthony Mwangi

As part of the induction process for the new Chairperson and Commissioners, a retreat was held from 28 to 31 January 2025, in Naivasha.

Presentations were delivered by the senior management in all directorates and departments, as well as from FCPA. Jane Muthaura, Chairperson of the Audit and Risk Committee.

In her overview, Anne Gitau, Commission Secretary/CEO, outlined the mandate, strategic plan, core values, functions and principles within which SRC operates. In addition, the presentation also focused on internal Commission Committees and the structure of statutory reports submitted to key offices.

SRC’s technical engine runs through the Directorate of Remuneration Services. This presentation highlighted the factors of pay determination that impact on the fiscal sustainability of the wage bill and the remuneration review cycles. The drivers of the wage bill were highlighted, and which have occasioned the current wage bill trends in Kenya.

Since the exit of the Second Commission, institutions have been submitting requests for advice on remuneration, benefits and allowances. The status of the pending list of decisions was displayed and which will systematically be attended to by the new Commission.

The Research, Monitoring and Evaluation (RM&E) Department noted that M&E activities involve collection and analysing of information on the implementation status of regulations, circulars and advice, as set by SRC. Most recently in November and December 2024, SRC undertook a countrywide M&E visit to all 47 counties.

Further, the status of implementation of the Third National Wage Bill Conference, 2024, was emphasised, with a target of achieving a wage-bill-to-revenue ratio of 35 per cent by 2028, through a whole-of-government approach.

Allowances are defined as any periodic or one-off amount that is payable to public officers over and above basic salary with the objective of addressing specific needs or circumstances of an employee’s engagement.

A benefit, on the other hand, is any financial or non-financial compensation that is provided to a State or other public officer and include, medical covers, club membership and retirement benefits, among others.

These was enunciated during a induction presentation by the Allowances and Benefits Department, detailing growth in the number of allowances over the years and the resultant strategic management and streamlining of the allowances.

As per the Allowances Policy Framework, the management of allowances is being implemented through a four-phased process, with SRC currently on the third phase.

The Job Evaluation and Salary Structures Department supports SRC through job evaluation (JE) and grading of public service jobs, comparative surveys on labour market and trends in remuneration structures, development and review of remuneration structures for the public service, and providing support to stakeholders in training on JE and implementation of JE grading and salary structurers.

During the induction, the Commission benefited from an analysis of the compensable factors used in JE, the JE process, the banding system, and the salary structures.

SRC has a key role to play in Collective Bargaining Negotiations (CBN), as part of the tripartism process involving employers, government and trade unions. The presentation from the CBN Department stressed that SRC advises the public service only on the remuneration and benefits aspects of Collective Bargaining Agreements (CBAs).

SRC communicates beacons for remuneration reviews to the employer within which to negotiate with trade unions, considering the key factors of affordability and fiscal sustainability. Public institutions are required to obtain SRC advice prior to commencement of negotiations.

The presentation from the Productivity and Performance Department noted that SRC issued the Framework for Recognising Productivity and Performance in the Public Service in April 2023.

Despite being lauded as a productive nation, the presentation emphasised, Kenya’s labour productivity remains low compared to other countries. For instance, Kenya’s labour productivity compared to African nations, stood at 27 out of 53, and at 155 out of 189 countries globally.

This is according to the International Labour Organization data of 2023. The presentation during the induction highlighted SRC’s effort in productivity mainstreaming in the public service.

Shifting gears, the Directorate of Corporate Services at SRC is responsible for the direction and management of corporate services to achieve SRC’s strategic objectives in the departments of Finance and Accounts, Human Resource and Administration and Information, Communication and Technology (ICT).

Over the last several years, SRC achieved Unqualified Audit Opinions on its annual report and financial statements for both SRC and Mortgage and Car Loan Scheme Fund. Further, the presentation noted that SRC was awarded during the Financial Reporting (FiRe) Awards and the Champions of Governance Award.

The Human Resource and Administration Department is responsible for the development and implementation of HR policies and procedures to align the HR function with the overall mandate of SRC and the discharge of day-to-day administrative and logistics functions for effective service delivery.

The induction presentation expounded the recruitment process, employee compensation, leave management, training and capacity building, disciplinary process, performance management, transport and logistics, and employee benefits.

The Finance and Accounts Department highlighted the planning and budgeting process, which begins with receipt of the budget preparation guidelines from the National Treasury in August before the commencement of budget year and ends when the budget execution process begins in July.

The budget overview explained the seesaw in the funding level at SRC over the years. There exists a funding gap that has impeded the full implementation of SRC’s strategic plan. While SRC continues to engage the National Treasury to fund the critical gaps, SRC is also pursuing alternative funding pots.

In delivering its role of managing technology resources in SRC, the ICT Department implements key processes. These include, ICT Infrastructure Management, Procurement and Disposal, End-User Support and Help Desk Management, Cybersecurity and Data-Security, Data Management, Software Development and Management, Strategy and Governance, Training and Awareness and Innovations.

Automated systems that have been put in place in SRC include, Electronic Document Management System(EDMS), Wage Bill Monitoring System, Integrated Job Evaluation System (IJES), Stores management system, Office 365 office productivity tools, website for SRC and the National Wage Bill Conference Website, Intranet, Supplier Registration Portal, Bulk SMS System, SRC App, Veeam backup management and replication system and disaster recovery site.

The induction presentation from the Supply Chain Management Department teased out its key processes. These include; preparation of the annual procurement plan, procurement of goods, services and works, contract management, inventory management and asset disposal.

The department ensures timely, efficient, and effective procurement of goods and services, while adhering to the procurement policy and regulations.

The week-long induction also delved into the legal processes within SRC. The Legal Services Department provides legal representation for SRC, while ensuring compliance with the law and protecting the legal interests of SRC.

The presentation delved deep into SRC’s mandate, and other constitutional provisions within which SRC undertakes its functions. The Commission was enlightened about several ongoing legal cases and those whose judgements had been rendered by the courts.

The Corporate Communications Department noted that it fulfils wide-ranging initiatives. These include, communications, media, media monitoring, social media, audio-visual communication, article-writing, website and Intranet management, online communication, production of information, communication and education (IEC) materials, production of publications, corporate branding, image and reputation, external relations, advocacy, stakeholder engagement and partnerships, among others.

The Commission was informed of the several corporate social responsibility initiatives so far undertaken, the framework of partnership between SRC and the National Taxpayers Association, and the overall status of stakeholder engagement.

Further, an External Customer Perception Survey undertaken by SRC, covering the public and private sectors, achieved a remarkable overall score of 66.9 per cent, signalling SRC’s positive appeal, despite challenges faced in the remuneration and benefits discourse.

The Internal Audit Department is an independent appraisal unit that examines, evaluates and assists SRC in the discharge of its functions. The induction presentation highlighted the department’s role in evaluating risk exposure to SRC, evaluating reliability and integrity of information, and evaluating systems established to ensure compliance with those policies, plans, procedures, laws, and regulations.

The department also evaluates the means of safeguarding assets, effectiveness and efficiency in use of resources, and reviewing operations or programmes to ascertain whether results are consistent with established objectives and goals.

The induction session concluded with a presentation of the End-of-Term Report and the Strategic Plan of the Second Commission. These two presentations were key to shaping the future outlook of the Commission. The induction concluded with key action points for later implementation based on the presentations.