SRC developed the Allowances Policy Guideline for the Public Service in 2021 through a consultative and participatory process with stakeholder and public participation being undertaken as required under Articles 10 and 232 of the Constitution of Kenya, 2010.
The policy guideline provides a structured approach for streamlining the management and administration of allowances to improve transparency, accountability, equity and fairness, thereby ensuring the total public compensation bill is affordable and fiscally sustainable.
The proliferation of allowances has led to lack of transparency, inequity and unfairness in coverage, multiplicity and high proportions of allowances to basic salaries, and consequently, disparities in the gross pay paid to public officers.
In 2021, SRC commenced a phased approach to streamlining the management and administration of allowances.
Phase I: Streamlining of allowances for State officers resulted in three allowances being abolished. These include; Ministerial Allowance for Cabinet Secretaries; Plenary Sitting Allowance for Members of Parliament and Members of County Assemblies; and Taxable Car Allowance for Cabinet Secretaries, Principal Secretaries and Judges. This will result in reduction of the wage bill and more equitable remuneration.
Phase II: SRC reviewed and advised on four cross-cutting and common allowances in the public service. This included; Retreat Allowance; Sitting Allowance for Institutional Internal Committees; Taskforce Allowance; and Daily Subsistence Allowance (Local and Foreign).
Phase III: SRC is engaging employing public institutions on institution-specific allowances that require either to be merged, renamed, restructured, abolished, or retained.
Phase IV: While issuing advice on parameters for future Collective Bargaining Negotiations, SRC will progressively review allowances and benefits in the Collective Bargaining Agreements and align them to the provisions of the Allowances Policy Guideline for the Public Service.
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