Kenya: SRC Clears Public Service Pay Rise Backdated to July 2025 At Sh2bn

4 January 2026
Capital FM (Nairobi)
By Bruhan Makong

Nairobi — The Salaries and Remuneration Commission (SRC) has approved a pay rise for national government civil servants, clearing the first phase of the Fourth Remuneration and Benefits Review Cycle covering the period 2025/2026 to 2028/2029.

The review, which takes effect retrospectively from July 1, 2025, will cost the Exchequer Sh2.06 billion in the 2025/2026 financial year, according to an official communication from the SRC.

In a letter addressed to Jane Imbunya, Principal Secretary at the State Department for Public Service and Human Capital Development, the Commission said its 691st meeting held on December 19, 2025 approved a review of basic salary and leave allowance for civil servants under Phase I of the cycle.

The approval followed earlier correspondence from the State Department dated September 2 and December 11, 2025, which sought SRC guidance on negotiations for the 2025-2029 remuneration review period.

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Under the decision, a new basic salary structure and revised leave allowance will be implemented across the civil service, guided by a set of implementation measures.

SRC retained the existing house allowance framework, categorising duty stations into three clusters.

It placed Nairobi City in Cluster 1, while other cities and major municipalities--including Mombasa, Kisumu, Nakuru, Nyeri, Eldoret, Thika, Kisii, Malindi and Kitale--fall under Cluster 2. All other areas have been classified as Cluster 3.

In addition, entertainment, the Commission consolidated extraneous and domestic servant allowances into a single Salary Market Adjustment (SMA).

Statutory alignment

The Commission said the SMA aligns to the market positioning while complying with constitutional and statutory principles governing public sector pay.

SRC noted that revised salary structures for unionisable staff will be implemented through the Collective Bargaining Agreement (CBA) negotiation process.

The directive supersedes all previous advisories on remuneration structures for the affected items currently in use within the civil service.

"The approved remuneration structure shall be implemented with effect from July 1, 2025, marking the commencement of Phase I of the Fourth Remuneration and Benefits Review Cycle," SRC said.

"The purpose of this letter is to convey the Commission's advice for your further necessary action," said Margaret Njoka, Acting Commission Secretary and Chief Executive Officer of the SRC, who also thanked the State Department for its cooperation.

The move seeks to offer a modest relief to civil servants amid rising living costs, while setting the tone for subsequent phases of the 2025-2029 remuneration review cycle.

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