The Salaries and Remuneration Commission (SRC) of Kenya has suspended the implementation of new pay structures for county government officials. This decision was made during the Commission's 728th meeting on September 10, 2026, following a consultative session with the Council of Governors (COG) held two days earlier. The suspension is due to concerns over the fiscal sustainability of the proposed increases, given that most county governments are already operating with wage bills exceeding 35% of their ordinary revenue.
The SRC Chairperson, Sammy Chepkwony, stated that the Commission's core concern is that most county governments are currently spending more than 35% of their ordinary revenue on wages, a threshold the SRC considers fiscally unsustainable. Implementing the revised structures under those conditions would place further strain on public finances at the county level. The decision draws on Article 201 of the Constitution of Kenya, read together with the Public Finance Management Act, which together require prudent and responsible use of public resources.
The suspension targets three categories of county officeholders whose remuneration structures were communicated through SRC letters issued on July 21 and July 30, 2026. Those affected include state officers serving in county executive positions, board members of county public service boards (CPSBs), and county secretaries and county attorneys. The SRC emphasized that the freeze is not permanent and is intended to create space for further engagement involving the Commission, the COG, the Commission on Revenue Allocation (CRA), and the National Treasury.
According to the SRC, county governments spent KSh 235.96 billion on employee compensation, exceeding the statutory wage bill ceiling and leaving less funding for development. The Commission's decision was conveyed in a letter to Council of Governors (COG) chairperson Ahmed Abdullahi, announcing the immediate suspension of remuneration changes proposed under the Fourth Remuneration Review Cycle covering the period 2025/2026 to 2028/2029.
The SRC's decision aims to ensure fiscal responsibility and sustainability in county governments. The Commission is working closely with other stakeholders, including the COG, CRA, and the National Treasury, to find a solution that balances the need for fair compensation with the need for prudent public financial management. The directive was copied to all county governors, the Principal Secretary of the National Treasury and Planning, the Principal Secretary for Public Service and Human Capital Development, the Auditor General, the Controller of Budget, and the CRA chairperson.
In a related development, data showed that county governments have varying allowances for Members of County Assemblies (MCAs). Embu topped the list, paying its MCAs an average of KSh 163,602 a month, nearly three times the national average. This highlights the disparities in compensation across different counties and the need for a standardized approach to remuneration.
The SRC's suspension of new pay structures for county officials is a significant move aimed at ensuring fiscal sustainability in county governments. The Commission's efforts to balance fair compensation with prudent public financial management are crucial in promoting responsible use of public resources. The suspension will remain in effect until further engagement and agreement are reached among the stakeholders involved.
Key points
- The Salaries and Remuneration Commission suspended new pay structures for county officials due to concerns over fiscal sustainability.
- Most county governments in Kenya are operating with wage bills exceeding 35% of their ordinary revenue.
- The suspension targets state officers in county executive positions, board members of county public service boards, and county secretaries and attorneys.
