SRC Approves Backdated Pay Rise for Kenyan Civil Servants

Kenyan civil servants are entering the new year with a significant financial boost after the Salaries and Remuneration Commission (SRC) officially approved the first phase of the 2025–2029 remuneration review cycle. In a move that will bring relief to thousands, the salary adjustments are backdated to July 1, 2025, meaning employees can expect a lump-sum retroactive payment in their upcoming payslips.

The approval, finalized during an SRC meeting on December 19, 2025, allocates a staggering Ksh 2,065,701,510 for the 2025/2026 financial year. COTU Secretary General Francis Atwoli shared details of the circular sent to Public Service PS Jane Imbunya, confirming that the new structure covers all grades from CSG 1 to CSG 17.

One of the most significant changes in this cycle is the restructuring of house allowances into three distinct geographic clusters. The SRC has tailored these rates to reflect the varying costs of living across the country:

• Cluster 1 (Nairobi): Benefits from the highest rates due to the capital’s high cost of living.
• Cluster 2 (Major Cities & Municipalities): Includes Mombasa, Kisumu, Nakuru, Eldoret, Thika, Nyeri, and others.
• Cluster 3: Covers all other rural areas and smaller towns.

For instance, a high-ranking official in CSG 4 could see a basic salary reaching up to Ksh 396,130, with a house allowance of Ksh 140,600 if they are based in Nairobi. Meanwhile, entry-level staff in CSG 15 will see salaries ranging between Ksh 21,120 and Ksh 26,250, with a modest house allowance of Ksh 4,500.

The SRC is also introducing the Salary Market Adjustment (SMA). This is a strategic move to simplify the public service payroll by consolidating various fragmented perks—such as entertainment, domestic servant, and extraneous allowances—into a single, streamlined figure.

This “market reality” adjustment is designed to ensure that public sector pay remains competitive with the private sector while adhering to constitutional principles of fairness and fiscal sustainability. Additionally, the framework revises leave allowances, offering better financial support for staff during their mandatory rest periods.

For unionizable staff, these adjustments will be finalized through Collective Bargaining Negotiations (CBA), ensuring that worker representatives have a seat at the table. The SRC has directed all government ministries, departments, and agencies to implement these changes promptly, emphasizing that the retroactive payments from July 2025 should be disbursed without delay.

As this is only Phase I of the four-year cycle, civil servants can look forward to further reviews as the SRC continues to align pay with Kenya’s evolving economic landscape.