The Salaries and Remuneration Commission (SRC) in Kenya has proposed a new framework for rewarding public servants based on their productivity and performance. This framework, which came into effect on July 1, 2026, aims to promote efficiency, accountability, and better service delivery in the public sector. The new system will see public servants receiving bonuses based on their individual performance and the productivity of their institution.
Under the new framework, public servants will be eligible for bonuses if they meet set performance thresholds. The Variable Productivity and Performance Reward Scheme introduces a system where officers must meet specific targets to qualify for individual rewards. Those scoring above 100 per cent will be rated excellent and qualify for a reward equivalent to their score multiplied by one month's basic salary.
The framework provides for two routes for public servants to receive bonuses: individual performance and national or county productivity-based components. An officer's overall reward will depend on a combination of their individual performance and the productivity of their institution. For an institution to qualify for the national or county productivity-based reward, it must achieve a productivity index of at least 2.3 and a composite performance score of at least 100 per cent.
However, the payment of bonuses is not automatic and will depend on government revenue performance. The national or county productivity component will only be declared when ordinary revenue or own-source revenue exceeds approved targets. Additionally, GDP growth from the previous financial year and achievement of productivity improvement targets must be met.
The SRC has warned that lower or even zero rewards may be declared when revenue collection falls below target or during economic downturns. This makes government revenue performance a key determinant of whether public servants receive the national or county component of their bonuses. The rewards will be paid once at the end of the financial year and will not form part of pensionable earnings.
The new framework also links financial rewards to financial stewardship and governance. Institutions receiving an adverse or disclaimer audit opinion will be excluded from productivity and performance rewards. Responsibility will be assigned to the governance organ, management, department, or officers responsible for audit findings in cases of qualified audit opinions.
According to SRC chairperson Sammy Chepkwony, the reforms aim to promote efficiency, accountability, innovation, better service delivery, and a more sustainable public wage bill. The public wage bill currently stands at 41 per cent of revenue, an improvement from 55 per cent recorded in 2020. The SRC argues that the challenge is not simply how much the government pays its employees but whether taxpayers receive value for the money spent on public workers.
Key points
- The new framework ties financial rewards to measurable productivity, performance, and government revenue.
- Bonuses will be paid based on individual performance and institutional productivity.
- Government revenue performance will be a key determinant of whether public servants receive bonuses.
