Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694842416466.pdf (Kenya)
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SAI .\Rll:S,\\l)RITML\llR,\II()\(()\,\tl\(l()\\\i)sl,\lt)R(;()\'l:rl\[11.\l()lll(-l:\l S]\iSl.\fltlOLSt.\.\IROBIO\llrAPRIIlL)11 € ItrJ,r', r I Ill.\l E O f ' f 'A E LOIVI tvl i 5 5 i r.) trl The Salaries and Remuneration Commission is established under Chapter 12, Article 230(1) of the Constitution of Kenya, 2010.
Article 230(4) provides for the mandate the Commission as to: (a) set and regularly review the remuneration and benefits of all the State officers; and I 1 ) ti| b- t/;,'a >..tj +'l I (b) advise the national and county governments on the remuneration and benefits of all other public off icers.
ln addition to the powers and functions of the Commission under Article 230 (4), the Salaries and Remuneration Commission Act, 2011 provides under Section 11 that the Commission shal l: (i) inquire into and advise on the salaries and remuneration to be paid out of public .. |-, a II funds; (ir) keep under review all matters relating to the salaries and remuneration of public off icers; (iii) advise the national and county governments on the harmonization, equity and fairness of remuneration for the attraction and retention of requisite skills in the public sector; (iv) conduct comparative surveys on the labour markets and trends in remuneration to determine the monetary worth of the jobs of public offices; (v) determine the cycle of salaries and remuneration review upon which Parliament may allocate adequate funds for implementation; (vi) make recommendations on matters relating to the salary and remuneration of a particular State or public officer; (vii) make recommendations on the review of pensions payable to holders of public off ices; and (viii) perform such other functicns as may be provided for by the Constitution or any other written law.
GU I DING PRINCIPLES FOR REM UN ERATION DETERM!NATION ln the performance of its functions, the Constitution under Article 230 (5) provides that, the Commission shall take the following principles into account- (i) the need to ensure that the total public compensation bill is fiscally sustainable; (ii) the need to ensure that the public services are able to attract and retain the skills required to execute their f unctions; (iii) the need to recognize productivity and performance; and (iv) transparency and fairness.
POWERS OF THE COMMISSION Section 13 (1,2) of the Salaries and Remuneration Commission Act, 201 1 provides that the ,$'r i t'l)-, : ' I Commission shall have all powers generally necessary for the execution of its functions under the Constitution and the Act, and without prejudice to the generality of the foregoing, the Commission shall have powers to- (i) gather, by any means appropriate, any information it considers relevant, including requisition of reports, records, documents or any information from any source, including governmental authorities; (ii) interview any individual, group or members of organizations or institutions and, at the Commission's discretion, conduct such interviews; (iii) hold inquiries for the purposes of performing its functions under this Act; (iv) take any measures it considers necessary to ensure that in the harmonization of salaries and remuneration, equity and fairness is achieved in the public sector; (v) ln the performance of its functions, the Commission may inform itself in such manner as it thinks fit; (vi) may receive written or oral statements from any person, governmental or non- governmental agency; and (vii) shall not be bound by the strict rules of evidence.
vtstoN Equitable and sustainable remuneration and benefits for State and public officers in Kenya MISSION To set, review and advise on fair, competitive and sustainable remuneration and benefits through research and analysis.

CORE VALUES lntegrity Team work Objectivity Accountability Responsiveness f i so,.n*,t s A.r) ^r:r,41-r.rEFATroN r.,orr,4rssio.
i &1 -fl\t !-i rlF COr"l'IEjYf ABBREVIATIONS AND AC RONYIVS.. STATEIVENT FROIV THE CHAIRPERSON I\4EIVBERS OF THE SALARIES AND RETVUNERATION COIV]IVIISSION STATEN/ENT FROIV THE COIVTVIISSION SECRETARY 1 O BACKGROUND INFORTVATION ... ...... 2.0 SETTING OF REIVUNERATION AND BENEFITS IN THE PUBLIC SERVICE 2 1 OVERVIEW OF THE ECONOTV]Y 2.2 ECONOIVIIC GROWTH PROSPECTS 2 3 INFLATION 2 4IHE BUDGET 2.5 EN/PLOYtvlENT........ .
2.6 FISCAL SUSTAINABILITY EFFECT ... CHAPTER THREE 3.0 ACHIEVEN/ENTS OF THE SALARIES AND REIMUNERATION COtVtVIISSION 3.1 REI\4UNERATION AND BENEFITS IVANAGEIVENT.... ........ ..... 3.1 1 ln-depth Analysis on Private Public Sector Wage Differentials............... 3.1 .2 Job Evaluation Exercise 3.1.3 International Remuneration Comparative Analysis 3.1.4 Setting and Harmonization of Remuneration 3.1 .5 lmpact of the Set Remuneration and Benefits for State Off icers 3.1.6 Advice on Remuneration for Other Pubic Officers 3.1.7 Harmonizing and Restoring Equity in Remuneration Cyc1e............ 3 1.8 Development of Database for Analysis and Review/Determination of Remuneration Levels ......... 3 2 POLICY AND LEGAL FRATVIEWORK 3.3 STAKEHOLDERS ENGAGEIVENT AND PUBLIC PARTIC IPATION................... 3 4 PUBLISHING AND PUBLICISING CHAPTER FOUR............ 4.0 INSTITUTIONAL OPERATIONALIZATION 4.
1 DEVELOPM]ENT OF COIVIIVISSION CORPORATE IDENTITY....... 4.2 STAFFING OF THE CON/N/ISSION 4.3 CAPACITY BUILDING 4.4 OPERATIONAL POLICIES, PROCEDURES, IVANUALS AND DOCUIVENTS ,...

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4 5 OFFICE ACCON/TVIODATION AND FACILITIES...... 4.6 CORPORATE GOVERNANCE SYSTEIVS AUDIT REVIEW.......... CHAPTER F|VE.............. 5.0 CHALLENGES, RECOIVIVENDATIONS AND WAY FORWARD.. 5.1 CHALLENGES EXPERIENCED BY THE COIVN/ISSION 5.2 RECOI\4IVIENDATION AND WAY FORWARD..... 6.0 FINANCIAL REPORT AND STATEIVENTS FOR THE YEAR ENDED 3Oth JUNE, 2013............. REPORT OF THE AUDITOR GENERAL...... ANNEX 1 REIVUNERATION AND BENEFITS STRUCTURES SET FOR STATE OFFICERS ANNEX 2 PROFILES OF IVEIVBERS OF THE SALARIES AND REIVUNERATION COTVIV1ISSION Prt .D )-r ..4 ..6 ..7 ..8 ..9 10 12 12 13 13 13 13 13 14 15 16 18 18 18 18 19 .19 .20 .21 .21 .22 .22 .22 .23 .24 .25 .25 .25 .25 .25 .26 a1 .28 .28 .28 .29 .31 .31 .33 ..45 45 56 56 lq iL) ABBREVIATIONS AND ACRONYMS AG CBK crc csR DPMFG DPP DPPRC DRA GCCN GDP rcT rcsc IEBC IMF IPPD KBC KIPPRA KTN MP NTV PFM sRc USA wccsEo Attorney General Central Bank of Kenya Commission for the lmplementation of the Constitution Corporate Social Responsibility Department of Personnel Management of Federal Government Directorate of Personnel Department Directorate of Policy Planning Research and Compliance Directorate of Remuneration Analysis Government Common Core Network Gross Domestic Product lnformation and Communication Technology lnternational Civil Service Commission lndependent Electoral and Boundary Commission lnternational Monetary Fund lntegrated Personnel Payroll Database Kenya Broadcasting Corporation Kenya lnstitute for Public Policy Research and Analysis Kenya Television Network Members of Parliament National Television Public Finance Management Salaries and Remuneration Commission United States of America Washington Citizen's Commission on Salaries of Elected Officials LIST OF TABLES AND FIGURES FIGURE 1 Kenyan GDP Annual GroMh rate FIGURE 2 Kenyan lnflation Rate FIGURE 3 Central Government Wage Bill FIGURE 4 Basic and gross wage gaps between private and public sector TABLE 1 TABLE 2 Status of Kenya s sustainability parameters Remuneration Structure for State Offrcers as set and gazetted { i ,rnro,,,, r;ANL) nl\lur.lr BAli)N Lror!4t4ts,r,,r* i Sj} s'#\rEtVl!
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ci-l/\Jit?Ei15!l'l t I wish to present the Salaries and Remuneration I Commission Annual Report for the Financial Year lzolztzol3.

The report is on its performance and audited financial statements.

During the period, both the national and county governments became operational following the 4th [t/arch, 2013 general elections in accordance with the Constitution of Kenya.
The two levels of government ushered in new State Offices, and created several non-state offices especially in the county government.

This has expanded the public service and therefore, has posed several remuneration challenges.
On 1st IVarch, 2013, the Commission after conducting the job evaluation f or State off icers set the remuneration and benefits structure for the State officers, to ensure that as the elected State Officers took office there was a clear remuneration and benefits structure for the positions.

This was in compliance with the provisions of the Constitution and other legal rnstruments.
The Commission has also continuously advised on remuneration and benefits for other public officers in order to promote fairness, minimize disparities, harmonize remuneratron system and thus, establishing equal pay for work of equal value.

ln setting and advising on the remuneration and benefits structures, the Commission was guided by the principles provided within the Constitution and other written laws.
Key among these principles is'ensuring the fiscal sustainabilrty of the total public compensation bill'.

The principle was considered key as the Commission was constituted at a time when all sustainability parameters of the Kenyan wage bill were already beyond the generally acceptable limits.

lt is important to note that the implementation of the Constitution increases the wage bill.
Consequently, wage sustainability problems wrll have to be addressed by all institutions from a central point and in holistic manner.

lt is against this background that the Commission rationalized and set remuneration and benefits structures for State officers and advised on the remuneration and benefits for all other public officers during the year 2012/2013, as a step towards addressing wage bill sustainability.
As the Commissron undertook to implement its Constitutional lVandate, it faced a number of challenges.

These challenges ranged from.

non-compliancerto resistance to change from some publrc entities; expansion of the public service and thus, additional increase in the wage bill; institutional pressures to industrial unrests; lack of productivity and performance measurement tools; and high vertical and horizontal disparities and inequities in remuneration levels.
The Commission is nevertheless working with all stakeholders to ensure that these challenges are addressed in the most effective and acceptable manner.

It is the duty of every Kenyan to individually and collectively play a role in transforming the public sector wage bill management in order to promote sustainable social and economic development.
ln the discharge of its mandate, the Commission placed a high premium on {'i', 'Lr' : : O the principle of public participation and is committed to continuous engagement with all its stakeholders in seeking sustainable reforms in the public sector wage bill management in a fair and transparent manner.

The people of Kenya and other stakeholders have been supportive as the Commission undertook its mandate.

This was evidenced in the responses to the newspaper adverts including participation in public fora.
I therefore, take this opportunity to congratulate the people of Kenya for exercising their right by providing invaluable input to key decisions of the Commission.

I wish to assure all Kenyans that the Commission remains fully committed to undertaking its mandate in the best interest of this Country and for quality service delivery to all.
The Commission is indeed indebted to the people of Kenya, the national and county governments, the National Parliament, the Senate, various state organs, development partners and all other stakeholders' who have directly or indirectly played a role in the period under review and looks forward to continued support in achieving its mandate.
Mrs. Sarah J. Serem, EBS CHAIRPERSON fi i so,on,esANDFEIv'NEFATToNC()r,r,rssrc,ll i &1 NfiEMIBERS QDF TTIIE SAITARIIES AND RENflUNERATIONI COIWNflISSION Sarah l. C. Serem, EBS Chairperson Daniel O. Ogutu Vice-Chairperson Serah N. Kinyua Commissioner Hon.
Peter Oloo Aringo EGH Commissioner lacqueline A. lttlugo, OGW Commissioner Jason N. Namasake Commissioner Sellestine A. Kiuluku Commissioner i$* : Brig (Rtd) Samuel Kirugi, ltlBS Commissioner Anne E. Owuor Commissioner lsaiah Kubai Commissioner * * Joseph K. Kinyua, CBS Commissioner Titus 1"4.

Ndambuki, CBS Commissioner t'r i $Jf i Wanjuki Muchemi, CBS Commissioner S'#\-t-E }/l E r!-r Ff( rJ tvt'ri-t E co f/t tvt I 5 5 I o N 5E CiiE.

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Salaries and Remuneration Commission has made !


progressrve efforts and has had strong commitment I in operationalizing its mandate since inception.

The Commission established a competent and dedicated team of Secretariat Staff who have continued to provide solid support in the management and coordination of its activities.
The Commission has continued to strengthen its Secretariat through capacity building, targeted training and skills development of its human resources in strategic areas critical to its technical and administrative objectrves.

I.

The policy achievements of the Commission so far has been a result of numerous processes that became successful premised on the dedication of the Commission members, staff, stakeholders and members of the public.
The Commission undertook a Comparative Study to provide empirical evidence on wage differentials between the public and private sector as a baseline for sound policy formulation and wages in the country.

The Commission then conducted a lob evaluation exercise for State officers.

This enabled the Commission understand the job worth of state offices and informed the development of a remuneration and benefits itructure for State officers.

An extensive international study on comparable.
worth of State officers' jobs, wage sustainability parameters; and compression ratios was carried out to support the decisions of the Commission and inform in the setting of remuneration revels The Commission has continued to engage with other key stakeholders in order to marshal more support in the form of technical assistance in the revrew of relevant policies, development of Commission documents, budgetary support and the implementation of the Strategic plan.
The technical support received through the National Treasury by the Commission enhanced the Commission's ability to undertake its mandate.

The Commission is therefore, greatly indebted to the various levels and arms of Government, State agencies, Stakeholders, Development Partners and all the people of Kenya who supported the Commission during this period.

Without their financial, technical and moral support, the strides made in the period would not have been achieved.
G. A. Otieno (Mrs.), MBS CON/ IVISSION SEC RETARY/C HIEF EXEC UTIVE B t'tLi' ;UANAGEMENT TEAM t+ .4.

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Grace A. Otieno, l\,485 Commission Secretary Anne R. Gitau Deputy Commission Secretary ::+- /r,\ t3 Nicodemus Odongo Director, Research Compliance Policy and Planning l_a r' 1)l J Janet lv4abwa Directol Corporate Affairs *" , -t /r Rose K. lvlasya,HSC D i rector, Rem u neration Analysis ,-q t/r' I E,',.ECU'l) lE iUtvltvl/\i( / .-he Salaries and Remuneration Commission is established under Article 230 of the I Constitution to set, review and advise on fair, competitive and sustainable remuneration I anO benefits in the Public Service.
ln undertaking its functions, the Commission collects and collates data, and conducts research, surveys, job evaluation and analysis.

During the period of reporting, the Commission undertook a comparative study to provide empirical evidence on wage differentials between the public and private sector as a baseline for sound policy formulation and setting of wages in the country.
The Commission conducted a job evaluation exercise for State off icers and an extensive international study on: comparable worth of State officers' lobs; wage sustainability parameters; and compression ratios, to support the decisions of the Commission and inform the setting of remuneration levels for State officers.

This enabled the Commission to determine the job worth of State offices and informed the development of remuneration and benefits structure for State officers.
Additionally, the Commission advised on remuneration and benefits for other public officers in order to promote fairness, minimize disparities, harmonize remuneration system in an effort to establish equal pay for work of equal value.

The advices were guided by the Constitutional principles and wage bill sustainability.
The Commission during the period of reporting therefore: institutionalized the use of Realigned Civil Service remuneration as a benchmark for remuneration reviews; harmonized remuneration for disadvantaged organizations for attraction and retention; discontinued provision of salaries personal-to-self; stagnated remuneration for high paying state corporations; and advised on management of Collective Bargaining Agreements (CBAs) and implementations of the agreements for purposes of promoting sustainability of the total public compensation bill.
The Commission also advised the Public Service through a Circular to harmonize the review cycle to 4 years to allow for economic growth and manage agitation for pay reviews.

The Commission developed regulations to guide the submissions of remuneration cases for review.

While undertaking all these activities, the Commission complied with the provision of Article 232 (d) of the Constitution and consulted its stakeholders and members of the public at all levels of its major policy decisions.
The Commission being a new institution also engaged in operational activities during the same period.

These included acquisition of.

postal address; corporate colour scheme; logo; office space at Williamson building and partitioning the same; e-mail address (src@ kenya.go.ke); and website (www.src.co.ke).
The Commission furthel developed operating structures and recruited staff; enhanced capacity of its members and staff through training and benchmark visits; and developed Operational Policies, Procedures, and [Vanuals to guide its operations.

During the same period, the Commission faced a number of challenges.

These included: issues of non-compliance; resistance to change by some public entrties; institutional pressures; industrial unrests; lack of productivity and performance measurement tools; high !
,9,r -F )-r verticaland horizontaldisparities and inequities in remuneration levels; and expansion of the public service especially through devolution and thus, additional increase in the wage bill.

An analysis of macroeconomic aggregates used for testing affordability and sustainability over the period indicates that management of the wage bill is still a big challenge as the current wage bill is far beyond sustainable levels.
The cost of implementing the Constitution of Kenya, 2010 in terms of remuneration and benefits for the positions created therein, and implementation of collective bargaining agreements compounded the problem.
Further, although the Public Finance [/lanagement Act, 2012, provides that the Government should spend at least 30% of the total budget on development expenditure, the wage bill currently consumes a higher than the general acceptable percentage, when computed either against revenue, expenditure or gross domestic product.
The Commission is aware that besides the wage bill sustainability, there are other parameters provided in the Constitution againstwhich to gauge the remuneration and benefits setting and advice.

lVoving forward therefore, the Commission will develop a policy and legal framework to be able to manage the growth of the wage bill and link remuneration to productivity in the Public Service.

The Commission is therefore, planning to develop a remuneration and benefits policy.
The Commission also recommends that employment process in the Public Service be coordinated and harmonized to ensure that human resources are effectively and efficiently deployed to areas where they are most competent and optimally utilized.

The Commission also plans to institute measures aimed at enhancing compliance for purposes of ensuring that once remuneration and benefits levels are set, it is maintained.
The details of the Commission's activities during the year namely: economic parameters that guided the setting and advise of the remuneration for State officers and other public officers respectively; achievements; challenges; recommendations; and the audited financial report of the Commrssion are contained in Chapters one to six of this Report.

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.,D D-r' : l1 CHAPTER ONE 1.0 BACKGROUNDINFORMATION The Salaries and Remuneration Commission (SRC) is established with the mandate to set and regularly review the remuneration and benefits of the State officers and advise the national and county governments on the remuneration and benefit of all other public officers.
ln discharging its mandate, the Commission: collects, collates and analyses both primary and secondary data/informatron; undertakes studies on the labour market and surveys on trends in remuneration and factors affecting attraction and retention of staff in the Public Service; undertakes job evaluation exercises for the Public Service; and constantly liaises with primary stakeholders to ensure wage sustainability, adequate budgetary provision and general acceptability of the decisions and advice it gives.
Historically, the management of Public Service remuneration has not strictly adhered to the universally accepted principles of remuneration and benefits determination.

As a result, the Salaries and Remuneration Commission inherited disparities and inequities in remuneration and benefits payable to public servants, which was a major cause of dissatisfaction and led to frequent industrial unrests.
ln the first six months of rts existence, (January - June, 2012), the Salaries and Remuneration Commission was therefore, faced with a number of remuneration issues that adversely rmpacted on service delivery.

This period was used to initiate operationalization of the Commission and requisite studies that would inform decisions on remuneration setting, review and advice.
Even as the Commission initiated these processes, it was alive to the fact that there was need to have an effrcient and effective public service.

This of necessity called for attraction and retention of skills from both within and without the Public Service but within the fiscal sustainabi lity levels.
During the period, the Commission undertook a number of activities, to ensure: (i) harmonization, equity and fairness of remuneration and benefits; (ii) setting and advising on competitive remuneration that will ensure that the public service attracts, and retains requisite skills for delivery of its services; (iii) transparency and participation in remuneration setting by conducting job evaluation exercises, starting with State offices positions in July, 2012; and (iv) Developing and publishing regulation to guide remuneration and benefits management.
lf i soran,rs AND REMUNE RAToN cor4Mrssro" i &1 EHAPTER TWO 2.0 SETTING OF REMUNERATION AND BENEFITS IN THE PUBLIC SERVICE 2.1 OVERVIEW OF THE ECONOMY Globally, the economic recovery from the after effects of the 2O0B economic crises has been slowed down by Euro zone debt problems.

Of particular concern to Kenya therefore, is the fact that the Euro zone (a major trading partner) is projected to register a minus 0.1oh growth in 2013 rising Io 1o/o in 2014.
Global growth is expected to stand at 2.4o/o i,1 2013 and gradually strengthen to 3.1% and 3.3% in 2014 and 2015, respectrvely.

Emergrng economies (especially China & lndia) have equally recorded subdued growth rates compared to their historic trends.

Regionally, Sub-Saharan Africa growth will be sustained on a positive margin and is projected to rise to 5.8% in 2013 compared to 4.8% in the year 20j2.

2.2 ECONOMIC GROWTH PROSPECTS The performance of the Kenyan economy is similarly fairly promising.
The real GDp expanded by 4.6% in 2012 compared to a growth of 4.4% in 2011 and is projected to rise to over 5% in 2013 and 7o/o ul the medium term.
The economy's short to medium term forecast is for sustained and rising growth based on fundamentals such as: increased investor and business confidence due to peaceful lVlarch, 20,l3 elections; sufficient rainfall; stable macroeconomic environment; a projected easrng and stability of international oil prices; stability of the Kenya shilling; and reforms in the security, governance and justice sub-sectors.

Figure 1 gives the Kenyan GDP annual growth rate.


Figure 1: The Kenyan GDP Annual Growth rate KENYA GDP ANNUAL GROWTH RATE l1{.errl,xf,( hnr!ti, r) (lro,,, r1rIe51, l!,!lLr.t 51 5.1 52 4A 45 4.6 l5 35 4 3.9 I I l ]., 201 I 201 1 2012 2012 2013 2.3 INFLATION souRcE:lrri^r'li,iri)Na,lLr)|()Ur1\Loil ilftr tir\TtouriLtsrjkl^Lrol!At,,Tr\ The annual inflation decreased from 14.0 per cent in 2011 to 9.4 per cent in 2012 and is declining further.
The decline in inflation was largely attributed to better food supply resulting from favorable weather conditions.

The decline in inflation is favorable |.tr : {g} , tnt rt ri , Arir) rrt i'11-rr.Jt nAlr,,N ,,r:'.r,,,,ss,,,r., , ]$ to remuneration review, as it reduces the erosion of purchasing power of persons employed and thus, pressure for demand of higher wages.

Figure 2 indicates the Kenyan inflation rate.

Figure 2.
Figure 2.

The Kenyan lnflation Rate KENYA INFLATION RATE Ann!a ahange on Con5umer Pr ce lndex 20 15 -5 )ul/11 )aol12 !uV12 Jan/1 3 .lul/1 3 sOURCE: WWW TRADIN6ECONOMICS COM I KENYA NAIIONAt BURiAU Or 5TAT STICS 2.4 THE BUDGET ln 201 Z/13, overall Government expenditure stood at KShs.1,117.0 billion compared to KShs.947.8billion in 201 1/12.folG,l budgeted recurrent expenditure increased from Kshs.647.1billionin201 1/12,toKShs.8O8.3billionin2012/l3,andisprojectedtogrow to KShs.

780.6 billion in 2013/14.


Development expenditure was KShs.300.7 billion in 2011/12, KShs.298.9 billion in 2012/13, and projected to grow to KShs.439.1billion in 201 3/14.The stock of Central Government outstanding public debt increased by 14.8% from KShs.1 .3 trillion as at June 201 1 to KShs.1 .6 trillion as at June 201 2.

Total gross public Debt Stock was KShs.1.89 trillion as at end June 2013.

This ts an increase of 15 p.rcent from the year ending June 2012.
The Government plans to manage budget deficit through containment of non-priority, consumable expenditure and less productive expendrture and exercise prudence in borrowing to ensure debts remains sustainable.

Domestic debt stood at KShs.858.8 billion, while the External debt stood at KShs.774.6 billion in June 2012.

The provisional debt stock was KShs.

1051.0 billion and KShs.

843.6 billion for domestic and external debts respectrvely in June 2013.
The ratio of total debt to GDP stood at 51.0 per cent in 2O13,compared to 50.0 per cent in 2O12.

The current account deteriorated to a deficit of KShs.359.5 billion in 2012 from a deficit of KShs.340.2 billion in 20'l 1 mainly due to the widening of the visible trade deficit.

The capital and financial account recorded a higher surplus of KShs.438.0 billion in 2012 compared to a surplus of KShs.332.6 billion recorded in 2011.
The overall balance of payments improved from a surplus of KShs.2'1.8 billion in 2011 to a surplus of KShs.

123.2 billion in 2012.

This improvement was on account of increased international reserves attributed to the purchases of foreign exchange reserves from the domestic interbank market by CBK and the disbursement of llt/F loans under the Extended Credit Facility (ECF).

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i&l 2.5 EMPLOYMENT The labour market in 2012 recorded 659.4 thousand new jobs, representing an increase of 5.5 per cent.

Annual average nominal wage earnings increased by 4.7 percent in 2012 while the real average earnings declined by 4.8 per cent.

A total of 68.0 thousand new jobs were created in the modern sector in 2012, compared to 74.2thousand in 20'11.
The bulk of the new jobs in the modern sector were created in Building and Construction, lnformation and Communication, Education and Health sub-sectors.

The informal sector which constituted 89.7 per cent of total employment created an additional 591.4 thousand yobs.

The Kenyan average annual growth rate in wage bill over the last three year is about 13% (for 2012/13 alone, the increase was by 30ok), well above the nominal GDp growth of about 4o/o and population growth rate of about 3%.
After the recent unprecedented wage increases for teachers and doctors among others, the central government's wage bill now stands at about KShs.

295.3 billion.

When the wage component for local government, public universities, national security organs, and public investment projects is included, the total wage bill increased to about KShs.

458.7 billion.

Overall, Kenya s total wage bill in the public sector has continued to increase in nominal terms.
This is due to an increase in the number of employees as well as an increase in the average wage.

A significant amount of employee compensation is in allowances such as: personal allowance, hardship allowance, entertarnment allowance and risks allowances to mention a few.

The Huge wage bill has strained the Government's budget and denied the economy the much needed resources for infrastructure and social services like health and education.
The wage bill increases with no concurrent offsetting increase in revenue, has led to deficit financing which has negatively affected debt dynamics and is a breach of the thresholds, putting the country at risk of debt distress, like in the case of Greece.

The trend of growth of the central Government wage Bill is shown in Figure 3.

Figure 3: The Central Government Wage Bil!


Central govt wage bill 350,000 300,000 250,000 200,000 I 50,000 100,000 50,000 2004105 2005/06 2006107 2007108 200n^)9 2009/10 201(rll 201U12 2ot2n3 t,t., (Sou rce: National Treasury) Lr :15 2.6 F!SCAL SUSTAINABILITY EFFECT Fiscal sustainability is the ability of a government to sustain its current spending, tax and other policies in the long run without threat to government solvency or default on some of its liabilities or promised expenditures.
lt is assessed based on the sustainability of fiscal policies on long-run projections of country's public finances.

Analysis of parameters such as: wage bill as a share of GDP; wage bill as a share of total spending; wage bill as a share of domestic revenue; average government wage as a share of GDP per capita; and debVfiscal sustainability gives the Country's long term fiscal sustainability.
The relationship between wage bill and a country's gross domestic product (GOn; is therefore, a good indicator in assessing the long term sustainability.

It gives an indication of how much of a country's economic activity goes into paying salaries as opposed to other expenditure and development needs.

Comparison of this ratio with other regions and countries gives a glimpse which is very useful in sounding the alarm bells of a wage structure which might affect the macroeconomic structure of a country.
Furthel an analysis of this ratio between total wage bill and revenue is important since wages are paid out of revenue.

The higher the wage bill to revenue, the more vulnerable an economy becomes since less domestic resources become available for public investment.

A lower level is therefore, preferred.


An analysrs of macroeconomic aggregates in Kenya used for testing affordability and sustainability issues which have been computed from the economic aggregates as tabulated in Table 1 indicates that the current wage bill is already beyond sustainable levels.
This takes up a sizeable amount of fiscal resources, leaving little room for operations and maintenance, critical investment in health and education, as well as in infrastructure investment and has the effect of not only eliminating resources for development expenditure but also for creating an upward wage spiral within the private sector.
The cost of implementing the Constitution of Kenya,2010 in terms of remuneration and benefits for the positions created therein, and implementation of collective bargaining agreements that were not well analyzed without seeking the Commission's advice compounded the fiscal unsustainability of the wage bill.

Consequently, placing a huge wage burden on the exchequer.
Table 1: Status of Kenya's sustainability parameters Parameter Bill AS Yo GDP Total public sector wage bill ivil service wage bill w s%); oL (e. Recurrent Exp' as Ratio of recurrent exp.

to total budget Ratio of development exp.

to total budget lncome of the Coun Total (7 tries Budgqt o/o %); Current t -122 18 lncome Middle Medium- to Long-torm Target - i I Coun tries < 8.0 1o.s - s.o (8.5%).
I l 69.7 )n f -t- < 70.0 > 30.0 <35 bill as % of Revenue Ratio of wage bill to ordinary revenue Comparator: Africa (33.4%); LtCs (26.8%); MtCs (28.2%); HtCs (25.9%) q?7 (Source: National Treasu ry) tn: 1n.

: Pt, :$=f The Public sector wage bill, as shown in Table 1, as at 30th June, 2013, was about 12%, which is higher than the internationally desirable level of not more than 7o/o and government target of not more than B%.
The Central Government wage bill as a share of GDP is estimated lo be 7.8% compared to 6.5% for Africa which is also the government target while the Central Government wage bill took about 35oh of Government total revenue and with a debt service of about 17.2% leaving less than 48% of the total revenue for other operations.
The wage bill to revenue ratio was about 50% which is way above the desirable level of not more than 4Oo/o.lt is important to note that in an effort to manage the wage bill and the recurrent expenditure, the Public Finance lrzlanagement Act, 2012, provides that the Government should spend at least 30% of the total budget on development expenditure.

The total estimated public sector wage bill for financial year 2012l13 stood at KShs.

458.7 billion; or 30.2o/o of the country s total budget.
lt is important to note that in the 1990s when the Central Government wage bill as a percentage of GDP was at 9%, it was considered alarming and Public Service reform programmes, restructuring of Government and budgetary reforms had to be undertaken to reduce ther percentage of the wage bill to GDP.
When the Salaries and Remuneration Commission took office with expectations to harmonize and create equity in remuneration, the percentage of wage bill to GDP was about 12o/o yet organizations and positions are still being created.

The management of the wage bill posed a great challenge to the Commission as it undertakes its mandate.

To this end all public finance management:stakeholders should work together towards ensuring that the wage bill comes down to within the targeted 8o/o of the country's GDP.
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: )-r i 17 ci-l/\P'rifl 'rilftEE 3.0 ACHIEVEMENTS OF THE SALARIES AND REMUNERATION COMMISSION 3.1 REMUNERATTON AND BENEFITS MANAGEMENT Efficiency and effectiveness in the public sector is a key input in achieving national development agenda.

Currently the public sector is the largest employer and spends a large part of the Country's resources (over 50% of revenue) on remuneration and pension benefits for the public servants.
A high public servtce wage bill reduces the resources that could otherwise be used in other development priorities.

Currently, the wage bill as it stands is unsustainable and impacts negatively on the economic development.

lt is therefore, incumbent upon all Kenyans to ensure that there is the right mix between the high spending on public servants, and improved service delivery and productivity.
Whereas having a capable, highly motivated and efficient public service workforce is in the interest of every Kenyan, the right principles and practices of pay determination must be employed in developing the remuneration systems, structures and levels to ensure that the government achieves its objectives within a sustainable budget.
3.1.1 ln-depth Analysis on Private Public Sector Wage Differentials Following the operationalization of the Commission, it was apparent that the remuneration in the Public Service was unsustainable and not properly managed thus, reflecting distributive, procedural and social inequities.

which could not be addressed overnight but required in-depth study and analysis to get to the root cause for appropriate remedial measures.
The Commission undertook a comparative study to determine wage levels in the Kenyan labour market specifically the public-private sector wage differentials.

The study revealed that at the basic support staff level and at the highest ranking staff (policy level), the public service offers a total remuneration and benefits package that is attractive beyond what is offered in the private sector.

The private sector however, rewards comparatively well for the middle technical and professional cadres.
Figure 4 demonstrates the findings.

Figure 4: Basic and gross wage gaps between private and public sector (Kshs) 60,000 50,000 40,000 30,000 20,000 10,000 0 - 10,000 -20,000 IB: !Basic Salary Differential T<rtal Salary Differential ss,056 56,092 7,O32 Lu,."
-7,150 18,882 3,045 I State Corporations and Parastatals I 1,828 7,480 (bnstitutional()tlices LocalGovernnretrt Source: Comparative Study on Public-Private Sector Wage Differentials in Kenya (2012) ,, !- I 3.1.2 Job Evaluation Exercise The analysis of the findings of the comparative study on public-private sector wage differentials in Kenya brought out clearly the disparities not only between the Public Sector and the Private Sector but also within the Public Sector.
The disparities and inequities in remuneration and benef its inherent in the Public Service were also reflected in the existing State officer's positions.

The study also brought out the essence of basing the remuneration determination and review on sound principles for purposes of ensunng objectivity, equity, competitiveness and affordability based on the resource capacity of the Country.
To ensure that the inequities and disparities were not carried over to the new State officer positions created by the Constitution, SRC undertook a comprehensive job evaluation for State officers with a view to determining the job worth of the positions for subsequent remuneration setting.
The job evaluation undertaken by the Commission was the first of its kind in Kenya public servrce and the aim was to ensure that the remuneration determined thereafter, is credible, objective, defensible and therefore, acceptable.

The job evaluation compared the relative worth of the State offices bringing out the internal relativities and comparable factors in terms of input, process and output.
lt assessed the levels of competency required to carry out the job under several factors but putting more emphasis on the problem solving, communication, decision making process, accountability, influence, financial and general impact of the respective State offices.

The resultant output of the Job Evaluation was Job Grading Structure that was later used to attach monetary values to the lobs 3.
'1.3 lnternational Remuneration Comparative Analysis To ensure that Kenya retain its competitiveness, the Salaries and Remuneration Commission with technical assistance of World Bank undertook a study on international practices in remuneration determination for State officers.

The objective of the study was to establish: remuneration practices; remuneration levels and structures; internal and external relativities and comparison of benchmark positions relative to per capita GDP of respective countries.
The study examined a sample of nine countries The countries included advanced industrialized economies namely: United States of America, United Kingdom, Australia and Canada and comparator African countries namely: Ghana, Rwanda, Tanzania, South Africa and Uganda.

The study revealed that Kenya is an outlier remunerating its top State office holders hundreds of times more than its per capita GDP.
For example, the President was pard 362 times the multiple of per capita GDP compared to South Af rica where the President is remunerated at about 50 times of per capita GDP.

Rwanda was the only country nearer to Kenya where the President was paid 1 70 times and the Vice President 106 times the multiple of per capita GDP Among the advanced countries, in the USA, UK and Canada, the remuneration for Head of Government is less than 9 times the multiple of per capita GDP.
All State offices positions in Kenya were paid better than those in South Africa.

The ratio of the wage bill to revenue in Kenya was the highest at 53.7%o (2011/2012) compared to what was average standard for Sub-saharan Africa which was between 30% and 35%.

The conclusion drawn from the study was that Kenya was spending more of its revenue on wage bill; thus, reducing the resources available for development and operations and maintenance.
,' )- .10 :ld I I 3.1.4 Setting and Harmonization of Remuneration State officers: The Commission used the result from the Job Evaluation Exercise and the analysis from the lnternational Remuneration Survey, to set remuneration and benefits levels for State offrcers.

Appropriate remuneration and benefits levels were therefore, determined after a comprehensive comparative analysis with other world economies, East African countries and the economic simulation of the Kenyan macroeconomic situation.
This was for purposes of determining sustainabilrty.

The proposals were subjected to public consultations as required by the Constitution.

The proposals were thereafter reviewed taking into account views from the public and the relevant stakeholders.

The final remuneration structure was gazetted on 'lst of N/arch, 2013. ,81 lt I I l\ The set remuneration levels were also communicated to the respective Accounting Officers, NationalTreasury, Controller of Budget and Auditor General.
The remuneration levels set by the Commission for State officers are shown in Table 2.

Table 2: Remuneration Structure for State Officers as set and gazetted G F5 F4 F2a F?l) F1a F1h FSe Fqh F4 E3 E2a E2b E1 D5 D4a D4b 310-319 )qo-)99 )RO-)49 260-269 260-269 )50-259 7s0-759 )40-)4q )ao-)4q 7 ?n-7 ?q 220-229 210-219 210-219 200-209 1 q0-1 99 190-lgg 1 80-1 89 TOTATS 316 297 285 )64 266 259 256 )44 )4\ )?)
229 ))4 218 208 194 188 184 i,iiiif*,nlntlrrt{orr Ltlcb :,f '!ftP4* 1-23f,500 1,051,875 99Aooo 821,3i3 792.000 65s.8ls 640.681 532-s00 s26.081 495.000 445,s00 334,125 225,000 45J00 180.000 123.?50 79,200 000 1-402,500 l-3_20,000 12ii,535 874,500 701,/U1 -6A000 701,tU| 480,000 _3J0,000 300,000 190,000 1!s,600 1_ 3 1 58 78 5 32 50 a2 77 198 7,165 3,965 The corresponding levels of State Offices in the remuneration structure obtained out of the job evaluation exercise are juxtaposed against the remuneration levels determined as follows: Levels State offices in the category G President of the Republic of Kenya F5 Deputy President of the Republic of Kenya 20 : tr, : -..-..D : )=r' F4 F2a F2b F1a F1b E5a Esb E4 E3 E2a E2b E1 D5 D4a D4b Speakel Senate and National Assembly and the Chief Justice Deputy Chief Justice Dep.
Speakers of Senate and National Assembly, AG, Cab,inet Secretary, Secretary to the Cabinet, Auditor General, Chairs of IEBC and ClC, Chief of Defence Forces, Judges of the Supreme Court Principal Secretary, DG-NIS, lG-NPS, Controller of Budget, Governor, Chairs of full time independent commissions, DPB C.KA, CKN Senators, lVPs, Registrar of Political Parties, Dep.
lnspector General of Police, [tr]embers of lndependent Constitutional Commissions (Excludes commissioners who serve commissions on part-time basis) Secretaries of lndependent Constitutional Commissions Deputy Governor Chief IVagistrate Senior Principal Residence Principal Residence Speaker of the County Assembly/County Executive lt/ember Senior Resident IVagistrate Resident lVagistrate lVember of County Assembly The full list of the State Officers in the various Arms of Government nanrely: Executive, Legislature, Judiciary, Constitutional Commissions, lndependent Officers and County government and the remuneration and benefits attached to the positions is attached asAnnexl(Tablesl-5).
3.1.5 tmpact of the Set Remuneration and Benefits for State Officers The set remuneration package for the state officers who comprise 39/o of the total public service had the following impact.

1 2 Reduction of Compression Ratio The set remuneration structure reduced the compression ratio (the ratio between the highest paid and the lowest paid)within the State Offices pos;tions by more than 50% f rom the previous 33.4 to 1 5.6, thus, significantly reducing the vertical disparity.
Capping of Allowances The set remuneration package for all State Officers consolidated the pay.

The Commission adopted the consolidated package approach as a means to control proliferation of allowances which is a major cause of disparity and uncontrolled increase to the wage bill.

For purposes of pensions management and computation, 600/o of the set gross remuneration forms the basic salary while all other allowances unless specified are consolidated into lhe 40% of the total set gross remuneration.
3.1.6 Advice on Remuneration for Other Pubic Officers The Commission came to office and inherited a public service which was characterized by serious vertical and horizontal disparities and inequities which had accumulated over a period of time.
t\: |-r' : i)1 : Nl To address the remuneration disparities the Commission commenced its operatrons by analyzing the collective bargaining agreements and Government remuneration commitments that had not been addressed and advised that the same be addressed to mitigate the industrial unrests.
On the advice to the national and county governments on remuneration and benefits for other public officers the Commission achieved the following: (i) lnstitutionalized the use of realigned Civil Servrce remuneration structure as a benchmark for remuneration reviews.

(ii) Reviewed the remuneration structure of public service organizattons that pay comparatively low remuneraticn within the category/sector for attraction and retention.
(iii) Developed remuneration and benefits regulations for managing remuneration advice.
(iv) Removed provision of salaries personal-to-self (v) Stagnated remuneration for high paying state corporations (vi) Froze remuneration reviews for staff of Commissions (vii) Advised on management of Collective Bargaining Agreements (CBAs) implementations for purposes of managing sustainability of the total compensation bill (viii) Advised on the review of the pay package for low paying state corporations below the benchmark levels.
3.1.7 Harmonizing and Restoring Equity in Remuneration Cycle The public sector had different review cycles.

The Commission issued a Circular to the Service to harmonize the review cycle from the previous period of between 2 to 5 years or as determined by the executive to a cycle of 4 years to allow economy to grow in addition to stopping endless agitation for pay reviews.
3.1.8 Development of Database for Analysis and Review/Determination of Remuneration Levels The Commission has created a depository/database for public sector remuneration which rs available to the public.

3.2 POLICY AND LEGAL FRAMEWORK The Commission through engagement of lndustrial Courts has been able to manage collective bargaining agreements to reduce industrial unrest.

Subsequently, the Commission advised on Collective Bargaining Agreements presented to the Court for registration.
This has gone a long way to create order in the whole process of trade union led salary demand process.

The Commission has also been able to constructively engage the Unions.

ln 2012l13 therefore, the Commission was able to advise the public institutions and relevant unions in arriving at Collective Bargaining Agreements which were in compliance with the law and sought to maintain sustainability of the total public compensation bill as well as averted industrial action.
ln addition, the Commission participated in legal proceedings, mostly constitutional petitions to defend its constitutional and statutory mandate and the performance thereof.

The Commission defended 3 cases during this period.

The Commission also issued nn: 4(,i ,-')- t guidelines on remunerations setting and advises to the Service.
3.3 STAKEHOLDERS ENGAGEMENT AND PUBLIC PARTICIPATION 3.3.1 Public Participation The Commission prioritized stakeholders' engagement strategies, public relations and constant consultations with members of the public.

This was in the fulfilment of the Constitutional requirements of transparency and accountability.

lt was further in recognition of the provision of public participation as the only way to engage the public in making decision.
\- \- \- \ \,:" \ o ..d.i -,r During the period under review, the Commission therefore, engaged with different stakeholders and the public to ensure that there was adequate public participation and stakeholder consultations in the setting, review and advising on the remuneration.

A number of stakeholder meetings were held at the Commission's Boardroom to receive submissions, clarify decisions or implementation processes.
A number of workshops were also held to address the concerns raised by the stakeholders and enhance understanding of the Commission's mandate.

Through public hearings conducted at the county levels, the Commission also solicited stakeholders' and public opinion not only on issues of remuneration and benefits but also on its corporate image.
3.3.2 Dissemination of information to the public As the Commission undertook its mandate, it realized that a number of institutions including the public, did notquite understand its role norwhatwas required to resolve the deeply embedded inequities and disparities in the Public Service remuneration.

There were expectations for quick fixes without the understanding of financial implications and the unsustainable status of the wage bill.
As part of its strategy of public education and to ensure meaningful stakeholders and public involvement, the Commission undertook to sensitize both the Stakeholders and the citizenry through several Television and Radio talk shows including infomercials in various major media houses (Citizen TV KBC, NTV KTN, K24, KISS TV, Radio IVaisha, KISS FN/, Royal tVedia FIV vernacular stations, the Radio Jambo FlV, Classique FIV and Radio Afric and F]vl Vernacular stations).
The Commission also issued various advisories and engaged in interviews, press briefs and statements with the major daily newspapers to: (i) Enhance awareness about the Commission, its mandate and functions; (ii) Educate and address the concerns over 1ob evaluation exercise; (iii) lnform on the state of the wage bill; (iv) Communicate Commission's position on remuneration setting and wage bill sustainability; and (v) Clarify the object of remuneration setting and advice: and (vi) Clarify the policies and principles that were being applied in the process.
t"i i "-i i23 3.4 PUBLISHING AND PUBLICISING The following reports were published and publicized by the Commission.

(i) Public-Private Sector Wage Differentials in Kenya, February 2013.

(ii) Remuneration of State Officers in the Government of Kenya: An lnternational (iii) Report of Public Participation on Proposed Grading and Remuneration.

February, Perspective, February, 2013.

2013.

(iv) Job Evaluation for State Offices: Grading structure, February, 2013.
(v) Job Evaluation for State Offices: Consolidated Report.

(vi) Remuneration Structure for State Officers (Gazzette Notice), March, 2013. f{ i sn.on,es nND BEMUNEBA.

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Ci.I/\P'TEi,, FOUi\ 4.0 INSTITUTIONAL OPERATIONALIZATION As of 30th June, 201 3, all lVembers of the Commission had been appointed as provided in the Constitution and the Salaries and Remuneration Commission Act, 2011, except the nominee from the Natronal Police Service Commission whose case is still under process by the relevant Authorities.
ln carrying out its Constitutional mandate and functions as is stipulated in the Constitution and the Salaries and Remuneration Commission Act, 2011, the Commission adopted an organization structure that addressed the key thematic areas of its core mandate.

The Commission remained the apex policy and decision making body while the Secretariat was structured into three Directorates namely: Remuneration Analysis; Research, Compliance, Policy and Planning; and Corporate Services.
4.1 DEVELOPMENT OF COMMISSION CORPORATE IDENTITY ,lr.

The Commission inherited the offices of the def u nct Perma nent Pu blic Service Rem u neration * Review Board which it appropriately labeled following its operationalizatton.

As part of development of a corporate identity and branding of the Salaries and Remuneration Commission, it acquired a postal address, identified its corporate colour scheme and designed a logo which was unveiled and launched in February, 2013 having observed the due diligence.
Subsequently, the Commission developed a Corporate Brand ldentity IVanual.

The Commission also acquired an e-mail address (src@kenya.go.ke) and developed a website (www.src.co.ke).

4.2 STAFFING OF THE COMMISSION The Commission structured the Directorates and determined the staff establishment.

A total of 84 positions were created and the Commission planned for a phased recruitment, owing to technical nature of the skills required and the availability in the market.
A total of 1 1 positions were temporarily filled through deployment of staff from the larger Public Service to help operationalize the Commission.

A total of 38 staff were recruited through a competitive process.

The recruitment of staff for the period under review was completed as planned.

The recruitment for the remaining positions will be undertaken in the Financial Year 2013/2014.
4.3 CAPACITY BUILDING Ensuring attraction and retention, fairness and transparency, while at the same time recognizing productivity in wage determinatron is quite challenging.

Consequently, there was need for capacity building for the N/embers of the Commission and the ,t" : )-a .

'o^ :'i'L) staff to appreciate wide perspective of the remuneration setting, reviewing, advising and management.
This saw the Commission embrace continuous learning and experience sharing on the best practice in remuneration and benefits management in the Public Service.

This was done through formal training and by way of hosting delegations f rom countries with best practice and also benchmark studies to countries and institutions with best practice.

lnternational traininq was conducted for three members of staff while 20 members of staff were trained locally.
Corporate governance training was also held for [Vembers of the Commission and senior management staff .

rl The Commission received delegation from Ghana's Fair Wages and Salaries Commission who shared their experiences and lessons learnt f rom Ghana's process of job evaluation and remuneration and benefits setting.

The Commission also visited for benchmarking, a number of remuneration institutions in the United States of America (USA) which included.
Washington Citizen's Commission on Salaries of Elected Officials (WCCSEO); lnternational Civil Service Commission (ICSC); and Department of Personnel lVanagement of the Federal Government (DPIVFG).

The experience drawn from these interactions has enriched the Commission's decision making capacity.
sy * l 4.4 OPERATIONAL POLICIES, PROCEDURES, MANUALS AND DOCUMENTS During the period under review, the Commission developed the following documenV manuals for its internal operatron:- (i) The Strategic Plan 2013/2018; (ii) Servrce Charter 2013/2018, (iii) Financial Policy & Procedures N/anual; (iv) Audit Operations lVanual and Audit Charter; and (v) ProcurementlVanual.
26 tt L ,=sTre The commission also embarked on the development of Human Resource lVanagement Policy and manual 4.5 OFFICE ACCOMMODATION AND FACILITIES The Commission completed the partitioning of the acquired office space at Williamson building in compliance with the Government's open plan policy.

The Commission furnishedandmovedtothenewpremisesinFebruary,2013.
PartoftheCommission's staff operating the lntegrated Financial lVanagement lnformation System (lFlVlS) however, are yet to move to the Building due to incomplete works on the local area network and the lFlVlS.

4.6 CORPORATE GOVERNANCE SYSTEMS AUDIT REVIEW Departmental audiVreviews of procurement and Finance department were carried out during the year.

Audit reports were generated and forwarded for review and implementation of recommendations.
Review of the Commissions lnternal Controls was also undertaken with specific focus on the accuracy, relevance and completeness of committal documents as well as the Cash Book review.

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5.0 CHALLENGES, RECOMMENDATIONS AND WAY FORWARD 5..I CHALLENGES EXPERIENCED BY THE COMMISSION The Salaries and Remuneration Commission having been in existence for one and a half years, has made strides in addressing a number of challenges that it inherited on taking office.
Some of the challenges it has been faced with however, are still outstanding and will require concerted effort to address.

5.1.1 Wage-bill Sustainability vizaviz attraction and retention IVaintaining a balance between the constitutional principles of ensuring sustainability of the total public compensation and attraction and retention of the requisite skills ln the public service remains a challenge.
Furthel issues of equity and fairness against an already unaffordable wage-bill are pressing yet they are issues that cannot be addressed overnight and must be consistently and persistently be addressed.

5.1.2 Disparities caused by clamors for high pay and Industrial unrest: need for culture change Continuous clamors for high pay by the leadership cadre continue to set bad precedence which fuels industrial unrest.
Consequently, addressing the disparities that cause the feeling of unfairness in the face of unsustainable wage bill is a big challenge.

This is compounded by the little appreciation of the difficult economic times from the public servants which leads to constant pressure by public servants and thus, trade unions resulting in threats or frequent industrial disputes/unrest.
The challenge of changing of the mind sets that the Public Service is a'service' organization where remuneratjon of essence must reflect the job worth and service is real and need to be addressed as a matter of urgency.

Similarly the mindset that creation of an entity to undertake specrfic assignments for Government as a license to high pay is prominent and need to be addressed to reduce the wage disparities across different sub-sectors of the Public Service, and especially in State corporations.
5.1.3 Proliferation of allowances Proliferation of allowances and other benefits which is still being used to increase compensation reduces the rationality and transparency of the remuneration system.

The situation promotes agrtation as it has little direct relationship to job performance and productivity.

This impacts negatively on the perception of the job worth, employees' pension benefits which are computed on the basis of the basic salary and not total monetary compensation and the wage bill.
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5.1.4 lnadequate compliance Compliance challenges are still reflected in some government institutions and agencies who fail to f ully implement the decisions and advice of the Commission.

This undermines the management of the wage bill, fairness, equity and harmonization.
There are also some Public Service organizations that still attempt to carry out parallel remuneration review in spite of the Constitutional provision especially after the letter by the Attorney General communicated opinion on the mandate of SRC on State Corporations.
5.1.5 Expansion of the Public Service sector Expansion of the public service in terms of creation of new organizations and recruitment of additional staff defeats the efforts made in addressing wage bill sustainability and payment of adequate remuneration, as staff numbers have negative effect on the levels of remuneration and benefits payable.
5.1.6 National Policy Framework lmplementation of legislations and policies that are not aligned to the Constitutton resulting into conflict in remuneration setting and advice.

5.2 RECOMMENDATION AND WAY FORWARD The Commission recommends the actions described hereafter to achieve its mandate and improve on service delivery.

5.2.1 Remunerations and Benefits Policy for the Public Service For SRC to succeed in execution of its mandate, it needs a strong policy framework backed by the law.
lt is on this understanding that the Commission plans to develop a public service remuneration and benefits policy.

This will provide a frame work for strengthening remuneration and benefits management rn the public Service.

5.2.2 Sustainability of the public compensation bill The Public Service compensation bill is a function of staff numbers and the amount of money they earn.
Whereas the Commission is mandated to set and advise on the remuneration and benefits levels, other public bodies are responsible for determining the optimum number of officers.

A number of public servrce organizations were therefore, created and various positions established in both the national and county governments during the period without the participation of the Commission.

This had an adverse impact on the wage bill.

As the Commission moves to harmonize the remuneration in the Public Service.
the Government: (i) Need to rationalize the central and devolved functions so as to avoid duplication },r i29 and subsequently, higher wage bill; (ii) Need to have future employment process coordinated to make sure that human resources are effectively allocated to areas where they are most competent and needed to produce optimally while being tentative to impact on the wage bill; and (iii) Need to charge public service bodies with responsibilities impacting on wage bill to work together if the Government has to reduce the high compensation bill and maintain it at sustainable levels.
The Commission therefore, plans to host an international public compensation bill sustainability conference to openly discuss this issue and sensitise the public on the same.

The Commission also plans to carry out sectoral exercises that will determine job worth in the Service to ensure equal pay for work of equal value and address the unjustif ied disparities.
5.2.3 Compliance Framework The Commission recognizes the need for a compliance monitoring so as to ensure set remunerations, guidelines and advice are adhered to by the affected institutions.

The Commission plans to institute measures aimed at enhancing compliance so as to ensure effective discharge of its mandate.
Further, it also plans to involve for purposes of ensuring compliance: (i) All relevant government departments charged with the financial oversight responsibilities to strictly carry out their mandates in relation to wage bill sustainability; and (ii) All accounting officers to take personal responsibilities on non-complrance and containing and managing the wage bill.
The Commission also plans to mainstream reporting of non-compliance by developing a mandatory reporting system integrating the process that is already recognized in law.

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'f Ei', il)(- 6.0 FINANCIAL REPORT AND STATEMENTS FOR THE YEAR ENDED 30th JUNE,2013 STATEMENT OF CORPORATE GOVERNANCE Besides the oblects and authority in the Constitution of Kenya, 2010 under Article 249, The Commission is also accountable at all times to the public and all the stakeholders for ensuring that the Commission complies with the highest standards of corporate governance and operation ethics.
The Commission has embraced corporate governance through creation of the right corporate culture and values.

The Commission exercises the most reasonable care to ensure that the management of the Commission is carried out rn the best interest of the government and the public at large.

The overall management of the Commission is the responsibility of the [t/embers who are appointed by the President following approval by Parliament.
The lVembers of the Commission and management possess a range of reqursite skills, qualifications and experience to manage the Commission and work in compliance with the provision of Chapter Six of the Constitution of Kenya, 2010 and all related laws and regulations.
STATEMENT OF THE COMMISSION'S RESPONSIBILITY The Salaries and Remuneration Commission Act, 2011 requires that Salaries and Remuneration Commission (SRC) prepares financial statements for each financial year which shows a true and fair view of the state of affairs of the Commission for the year and of the operating results for the year.

The Commission is responsible for keeping proper accounting records which disclose, with reasonable accuracy at any time, the financial position of the Commission.
lt's also responsible for safeguarding the assets of the Commission.

The Commission is also responsible for the preparation and fair presentation of the financial statements in accordance with lnternational Financial Reporting Standards (IFRS) and the manner required by the SRC Act, and the Constitution of Kenya, and for such internal control as Commission determines is necessary, to enable the preparation of financial statements that are free from material misstatements whether due to fraud or error.
The Commission accepts the responsibility of the Annual Financial Statements which should be prepared usrng appropriate accounting policies supported by reasonable and prudent judgment and estimates inconformity with lnternational Financial Reporting Standards and the requirements of SRC Act and the Constitution.

The Commission is of the opinion that the f inancial statements give a true and fair view of the state of financial affairs of the Commission and of its surplus.
The Commission further accepts responsibility for maintenance of accounting records which may be relied upon to in the preparation of the financial statements, as well as adequate systems of internal control.
It )- :51 Nothing has come to the attention of the Commission to indicate that the Commission will not remain a going concern for at least 'l 2 months f rom the date of these statements tu Sarah J. Serem (Mrs.) EBS., CHAIRPERSON G. A. Otieno (Mrs.) MBS., CHIEF EXECUTIVE OFFICER lzls' 03/12/2013 )1ls' 03/12/2o13 [f i seranres aND REMUNEBAT'N coMi,,rssroN i &] Tclcphone : +254-20-3 4233 0 Fax: +254-20-31 1482 E-Mail: cag@kcno.go.ke Websitc: www.kenm.Bo.ke REPUBLIC OF KENYA P.O.
Box 30084-{0100 NAIROBI KENYA NATIONAL AUDIT OFFICE REPORT OF THE AUDITOR-GENERAL ON SALARIES AND REMUNERATION COMMISSION FOR THE YEAR ENDED 30 JUNE 2013 REPORT ON THE FINANCIAL STATEMENTS I have audited the accompanying financial statements of Salaries and Remuneration Commission set out on pages 10 to 21, which comprise the statement of financial position as at 30 June 2013, and the statement of comprehensive income, statement of changes in revenue reserves and statement of cash flows for the year then ended, and a summary of signiftcant accounting policies and other explanatory information in accordance with the provisions of Article 229 of the Constitution of Kenya and Section 14 of the Public Audit Act, 2003.
I have obtained all the information and explanations which, to the best of my knowledge and belief, were necessary for the purpose of the audit.
Management's Responsibll lty for the Flnancial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with lnternational Financial Reporting Standards and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to ftaud or error.
The management is also responsible for the submission of the financial statements to the Auditor-General in accordance with the provisions of Section 20 of the Public Audit Act, 2003.

Atldltor-General's Responsibillty My responsibility is to'express an opinion on these financial statements based on the audit and report in accordance with the provisions of Section 15(2) of the Public Audit Act; 2003 and submit the audit report in compliance with Article 229(7) of the Constitution of Kenya.
The audit was conducted in accordance with lntemational Standards on Auditing.

Those standards require compliance with ethical requirements and that the audit be planned and performed to obtain reasonable assurance about whether the financial statements are free ftom material misstatement.

Prtactolirg Awtt t6ilW in tle Ptiltc *Ot An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the audito/s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or enor.
In making those risk assessments, the auditor considers intemal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the management, as well as evaluating the overall presentation of the financial statements.

I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion ln my opinion, the ftnancial statements present fairly, in all material respects, the financial position of the Commission as at 30 June 2013, and of its financial performance and its cash flows for the year then ended, in accordance with lntemational Financial Reporting Standards and comply with the Salaries and Remuneration Commission Ac{, 201 1.

Edward R.O.
Edward R.O.

Ouko, CBS AUDITOR4ENERAL Nairobi ll December2Ol3 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE, 2013 Note 7 7(a) 8 9 ASSETS NON CURRENT ASSETS Property Plant & Equipment lntangible Assets Tota I Non-Current Assets CURRENT ASSETS Trade and other Receivables Cash & Bank balances Total Current Assets TOTAL ASSETS ACCUMULATED FUND Revenue Reserves Total accumulated funds CURRENT LIABILITIES Trade and other Payables Tota!
Current Liabilities 10 TOTAL FUNDS & LIABILITIES 2012t2013 Kshs 77,762,768 852,057 78,614,825 5,895,766 176,722,748 '182,618,514 261,233,339 251,620,114 251,620,114 9,613,225 9,613,225 261,233,339 $"^-....", Sarah J. Serem (Mrs.) EBS., CHAIRPERSON Date: 03/12/2013 G. A. Otieno (Mrs.) MBS., CHIEF EXECUTIVE OFFICER Date: 03/12/2013 t'r i -.

,.
,.

1 )ai : tOl .UU STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE, 2013 Note 3(a) 3(b) 4 5 6 7(b) INCOME Government Grants Other lncome Total EXPENDITURE Staff Emoluments Operating Expenses Comm issioners Expenses Depreciation Expenses Audit Fees Tota!
Expenditure Net Surplus/Deficit STATEMENT OF CHANGES IN REVENUE RESERVES FOR THE YEAR ENDED 30 JUNE 2013 As At l st July 2012 Surplus for the year As at 30th June 2013 2012t2013 Kshs 516,000,000 675,240 516,675,240 76,086,721 134,432,358 48,752,829 5,283,218 500,000 265,055,126 251,620,114 2012t2013 Kshs 251,620,114 251,620,114 [fi i ro, ou,es ort) r.i[: r,4r Jr'Jr: rlA r ror..] cor.,rr*i:lrr)r.i i &1 STATEMENT OF CASH FLOW FOR THE YEAR ENDED 30 JUNE, 2013 Cash flow from Operating Activities Surplus for the period Adjust for - Depreciation Working Capital Changes lncrease in Receivables lncrease in Payables Net cash from Operating Activities lnvesting Activities Acquisition of Property, Plant & Equipment Acquisition of lntangible Assets Net Cash used in lnvesting Activities Financing Activities Net !ncrease (Decrease) in Cash & Cash Equivalent Cash & Cash Equivalents as at'1.07.2012 Note 2012t2013 Kshs 251,620,114 7(b) 5,283,218 256,903,332 (s,89s,766) 9,613,225 250,620,79'.1 l 7(a) (83,021 ,666) (876,377) (83,898,043) 176,722,748 Tota!
Cash & Cash equivalents as at 30 .05.2013 9 176,722,748 f,{gl i .o.oo,ES AND FETM.,NEBAt.N coMMrss,o* i If NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE, 2013 1.

Summary of Significant Accounting Policies The principal accounting policies adopted in the preparation of these financial statements are set out below:- a) Basis of preparation The Financial Statements are prepared in compliance with lnternational Financial Reporting Standards (IFRS).
They are presented in functional currency, KShs.

(Ksh) and are prepared in accordance with the measurement prescribed by IFRSs and on historical cost basis.

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions.
lt also requires management to exercise its judgment in the process of applying the Commission's policies b) Revenue Recognition Revenue is recognized upon receipt of cash for all sources c) Fixed Assets Property, plant and equipment are stated at acquisitron costs less depreciation and rmpairment losses.

d) Work in Progress Work in progress constitutes the Office partition exercise that commenced in the current year and was in progress by the close of the financial year.
The details are as follows Total contract amount Amount certified and paid Outstanding Works 46,479,024 (37,291,49s) 9,187,529 e) Depreciation Depreciation is calculated on a straight line basis over the expected useful life of the asset.

Where an asset is acquired during the year, depreciation is applied on a prorata basis over the number of days to the end of the financial year of purchase.
f) Asset Depreciation Rate (%) Plant and [Vachinery lvlotor Vehicles Furniture, Fittings Computers Hardware & Software Office Equipment 12.5 250 125 333 33.3 58. : t'r- !

$3i NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE, 2013 g) Computer Software Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software.

These costs are amortized on the basis of the expected useful lives.
h) Current liabilities Current liabilities are those to be settled within the Commission's normal operating cycle or due within twelve months or those held for trading or those which the Commission does not have unconditional right to defer payment beyond 12 months.
Provisions i) Provisions are recognized when the Commission has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

D Retirement benefit costs The Commission runs a defined contribution pension scheme.
The assets of the scheme are held in a separate trustee administered fund, which is funded by contributions from both the commission at 20%o and employees at 10o/o of basic salary.

During the year, the scheme was managed by Jubilee lnsurance.

The CEO and the Deputy CEO are on gratuity al31o/o of their basic salary payable at the end of their contract period.

The amount has been accrued in the financial Statements.
&1 i r^ A*rE:s ANi) Irr: rr.4UNE BAr roN c.,rr,..,u* i [$ NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE, 2013 The Commission and its employees also contribute to the National Social Security Fund, a statutory defined contribution pension scheme.

The Commission's contributions in respect of retirement benefit costs are charged to the profit and loss in the year to which they relate.
k) Provision for staff leaves pay The monetary value of the unutilized annual leave by staff at year end is carried in the accruals as a payable and the movement in the year is debited/ credited to the statement of com prehensive income.

I) Exchequer Releases The Exchequer releases have been recognized under the lncome Approach (lAS 20) in which they have been treated as income and dealt with in the statement of comprehensive income.
m) Reporting currency The Financial Statements are presented in KShs., which is the Commission's functional and reporting currency.

Foreign transactions during the year are converted into KShs.

at rates ruling at the transaction dates.

Assets and liabilities at the reportrng date, which are expressed in foreign currencies, are translated into KShs.

at rates ruling at that date.


The resulting differences from conversion and translation of foreign currencies are dealt with in the Statement of comprehensive income foreign Currency Translation Reserve.

SRC does not have any foreign operations.

n) Operation Period Salaries and Remuneration Commission was established by the Constitution of Kenya 2010, under Article 230 and enacted by the parliament through Salaries and Remuneration Act in July 2011.
The members of the Commission were appointed on the 16th of December 2012.

The Commission operated under the tVinistry of State for Public Service until 3Oth June 2012. lt became fully operational from July 1,2012.

As such, this being the 1st year of operations, there were no comparative figure.

2.

Statement of Compliance The financial statements are prepared in compliance with lnternational Financial Reporting Standards (IFRS) and interpretation of those standards.
40, ,'')- I ,D NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE, 2013 3 (a) GOK Grants The Commission relies on exchequer grants to fund its operations.

The funds are received as itemized budget line upon request by the commission.

Date 24t08t2012 20103/2013 1st Quarter 3rd Quarter Total Government Grant (b) Other lncomes Sale of Tender Commission on check off TOTAL 4.
Personnel Emoluments Basic Salaries House Allowance Responsibility Allowance Entertainment Allowance Commuter Allowance Extraneous Allowances Domestic servant Leave Travel Allowance Salary Arrears Pension Top up salary for seconded staff Gratuity Total 201212013 Kshs 169,000,000 347,000,000 516,000,000 Kshs 661,000 14,240 575,240 Kshs 38,725,149 9,405,131 103,500 1,305,000 3,411,263 4,682,938 280,800 675,000 5,925,110 3,925,962 4,444,005 3,202,863 76,086,721 fld}.

i .^roo,i::r AI'!.
i .^roo,i::r AI'!.

IrEr"4rrNr:'At.N cor,4r'"4rs.,o* !

{l NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE,2013 5.
Operating Expenses Catering services Security services Vehicle expenses Bank Service Charges Dues and subscriptions lnsurance Expenses Meals and Entertainment Cleaning Expenses Office Stationery Office supplies Postage and delivery Printing and reproduction Repairs and Maintenance Telephone Utilities Other Staff Costs Computer Expenses Conference and Seminar facilities Training Expenses Foreign Traveling LocalTraveling Advertising and promotion Professional fees Rent and Rates 2012t2013 Kshs 1,832,947 732,OOO 3,316,419 100 531 ,860 1,423,605 2,756,01s 1 ,087,103 3,700,282 442,010 284,870 5,184,122 512,307 4,396,459 10,400 13,560,147 640,644 9,729,891 5,300,507 4,208,141 2,933,025 34,496,399 12,400,146 24,952,960 TOTAL 134,432,358 {f i so, o*t,s oNt) nEt\,.uNEBAroN cot\4r,,4rssroN i &} NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE, 2013 5.
Commissioners Expenses Sitting Allowances Commuter Allowance MealAllowance IVobile phone Allowances Subsistence Allowance Travel Expenses Total 7.
Property plant and Equipment Kshs 36,370,000 2,640,000 342,000 1,591,296 3,301,874 4,507,659 48,752,829 Cost/Yaluation Balance as at 1 July 2012 Furniture & Fittings Ksh Office Equip Ksh Motor Computer Vehicles Equip Ksh Ksh W!P Total Ksh Ksh Additions 17,305,135 6,005,650 22,419,385 37,291,496 83,021,555 Disposals Balance as at 30 June 2013 Depreciation 17,305,135 6,005,550 22,419,385 - 37,291,496 83,021,666 Accum dep as at 1 July,2012 Charge for the period Disposals Accum Depr as at 30 June 2013 721,047 334,216 4,203,635 721,047 334,215 4,203,635 5,258,898 s,258,898 NBV as at 30 June 2013 16,584,088 5,671,434 18,215,750 37,291,496 77,752,768 7al lntangible Assets CosWaluation Amortization Net book Value as at 30 June, 2013 2012t2013 Kshs 876,377 (24,320) 852,O57 {g1 i .n.no,t:s ANrl ut:r,UNERArroN coMr'^ss,ot i{[ NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE, 2013 7b) Depreciation Expense Property Plant and Equipment Amortization on lntangible Asset TOTAL 8.
Trade and other Receivables Staff DebtorVAdvances Prepayments Deposit TOTAL 9.

Cash and Bank Balances Central Bank Current Account Cash at hand Total 10.

Trade and other Payables Trade Creditors Retention costs Provisions and accruals Total 11.

Employees 2012t2013 Kshs s,2 58,898 24,320 5,283,218 502,324 5,353,442 40,000 5,895,756 175,448,028 1,214,120 176,722,748 301,817 2,323,952 6,987,4s6 9,513,225 The total number of staff in the Commission on permanent basis as at 3Oth June was 40 12.
Revaluation Reserves No reserves were revalued during the year.

13.

Related Party Transactions The Commission did not have any related party transactions during the year.

14.

Tax Status The Commission is a Government agency, fully funded by the Government and is therefore tax exempt.

/1i t't !
: t't i ')Vf ANNEX 1 REMUNERATION AND BENEFITS STRUCTURES SET FOR STATE OFFICERS Table 3: Remuneration and Benefits of all State Officers in Parliament State Officer Gross M Remuneration Basic (60%) Allowances (401") Total Basic (60y") Allowances (40Yo) Total 000 528 000 1,320,000 475,200 31 6,800 792,000 633,600 422.400 1,055,000 319,500 213,000 s32,s00 ,l) 000 6, 284,000 710,000 Speaker of the National Assembly Speaker of the Senate Deputy Speaker of the National Assembly Deputy Speaker of the Senate Party Leader of the lr,4inority Party Chairpersons of Committees l\zlembers of Speakers Panel Chief Whips lVlinority Whips l\,4ember of the National Assembly lvlember of the Senate Source: Salaries and Remuneration Commission Other benefits include: (a) Special Parliamentary Duty Allowance lVembers of Parliament who have additional responsibilities as provided by law and/or Standing Orders shall be paid an additional allowance as may be apportioned by the Parliamentary Service Commission up to a maximum of Kshs.150,000 per month.
(b) Mileage Allowance The mileage allowance and claim is to be calculated based on AA rates and distance to the l\zlembers home.

The allowance is payable in two components namely: i) Car maintenance allowance: To be paid at the rate of Kshs.356,525 per ii) month(capped a t AA rate of kshs.109.8x750kmx52 weeks)/12; lVileage allowance: this is claimable allowance for State Officers who travel beyond the 750 kilometers stated above and shall be paid at applicable AA rates.
(c) Committee/SessionSittingAllowances lt/lembers of Parliament shall be entitled to Sitting Allowance which should be paid in accordance with the Standing Orders or resolution of the Houses of Parliament at the following rates: i) Chairperson: A member of Parliament with additional responsibility as a chairperson whrle chairing a meeting shall be entitled to a sitting allowance of KShs.
15,000 per sitting; tr, i4D ii) Vice-Chairperson: A member of Parliament with additional responsibility as a Vice-chairperson while sitting in a meeting shall be entitled to a sitting allowance of KShs.

12,000 per sitting; iii) Member: All members of Parliament shall be entitled to a sitting allowance of KShs.

7,500 per sitting in a meeting/session as a lVember.

The following benefits shal!


apply to Parliamentary State Officers: (i) Accommodation and Subsistence Allowances:- to be paid at existing rates pending review by the Salaries and Remuneration Commission.

(ii) Security:-To be provided as advised by the lnspector General, National Police Service.
(iii) Mileage Allowance:- shall be paid to lVembers of Parliament per week of travel(s) up to a maximum of 52 weeks in one calendar year for the journeys between Nairobi and their Constituencies at AA rates or as reviewed by the Salaries and Remuneration Commission from time to time.

(i) Medica!
(i) Medica!

Scheme: Annual tr/edical cover shall be provided per family for self, spouse and up to four children below twenty five years, who are f ully dependent on the ltulembers of Parliament and all other Parliamentary State officers as follows: lnpatient Outpatient lVaternity Dental Optical Kshs.

10 million Kshs.

300,000 Kshs.

150,000 Kshs.

75,000 Kshs.


75,000 (iv) (v) (vi) (vii) (viii) Retirement Benefits:- Gratuity scheme at the rate of 31o/o of annual basic pay, shall be paid at the end of the term and shall not be pensionable.

Group Life Assurance:- State Officers shall be covered for a value equivalent to three times their annual basic salary.
Work lnjury Benefit (WIBA):- Work lnjury Benefits Act shall apply Group Personal Accident:- [t/embers of Parliament other Parliamentary State officers shall be covered for a value equivalent to up to three times annual basic salary.

Home, Utilities and Attendants:- Speakers of Senate and National Assembly shall be housed by the State and provided with all commensurate home utilities and attendants subject to review by the Salaries and Remuneration Commission from time to time.
Other additional benefits awarded to State officers in Parliament include: i).

Car Grant of Kshs.

5lt/illion per Parliamentary term repayable at 3% interest rate; ii) Car loan of Kshs.

7,000,000 repayable at3o/o interest rate 46i l,,t .F )-i Table 4: Remuneration and Benefits of all State Officers in Constitutional Commissions and lndependent Offices State Officer Gross Monthlv Remuneration Packase (XShs) Marimum Basic (60%) Allowances (4Oo/.)
Basic (60o/o) Total Allowances (4OoA) Total Chairperson, CIC and IEBC and Auditor General Vice-Chairperson, CIC and IEBC and Controller of et lvlember, CIC and IEBC and Charrperson other Constrtutional Commissions Vice Chairperson and lvlembers, other Constitutional Commissions 475,200 31 6,800 792,O00 633,600 422,400 1,056,000 393,525 262,350 6s5,87s 524,700 349,800 874,500 384,409 256,272 640,681 512,545 341 ,696 8s4,241 3 1 9,500 21 3,000 | 532,500 426,000 284,000 710,000 Secretary of Constitutional Commrssron 31 5,635 210,423 525,058 420,865 280,576 701,441 Source: Salaries and Remuneration Commission The other benefits include: (i) All other allowances and benefits not specified in this Gazette Notice cease to be payable.
(ii) The salary structure existing before this Gazette notice ceases to apply forthwith.

(a) Duty Facilitation Benefits The following benefits shall apply to the State Officers in Constitutional Commissions and lndependent Offices.

(i) Airtime:- Retain the existing rates and subsequently as reviewed by Salaries and Remuneration Commission.
(ii) Security:- To be provided as advised by the lnspector General, National Police Service a a Official car:- Chauffeur driven official car for the Chairperson The Vice-chairperson and other Commissioners; Transport Allowance of Kshs.
30,000 p.m. (b) Other Benefits (i) Medical Scheme:- The State Officers in Constitutional Commissions and lndependent Offices shall be entitled to full medical cover per family for themselves, spouse and up to four children below twenty five years and fully dependent on the State Officer as follows: lnpatient Outpatient Kshs.

10 million Kshs.

300,000 ,$at i Fl)-.

: ' 4l tVaternity Dental Optical Kshs.

150,000 Kshs.

75,000 Kshs.


75,000 (ii) Retirement Benefits:- A State Officer serving on Permanent and Pensionable terms shall join a contributory pension scheme and contribute at the rate of 7.5oh of basic salary with the employer's contribution at the rate of 15'h of basic salary.

A State Officer serving on fixed term shall serve on contract and be paid a service gratuity at the end of the term at the rate of 31o/o of annual basic pay for every year served.
(iii) (iv) (v) Group Life Assurance:- State Officers shall be covered for a value equivalent to three times their annual basic salary Work lnjury Benefit (WIBA):- Work lnjury Benefits Act shall apply.

Group Personal Accident:- State Officers in Constitutional Commissions and lndependent Offices shall be covered for a value equivalent to up to three times annual basic salary.
Table 5: Remuneration and Benefits of State Officers in the County Government State Officer Governor Deputy Governor Gross Minimum Basic (60%) Remuneration Allowances (4OYo) Total Max Basic (60y,) Allowances (40y.)
Total 384,409 256,272 640.681 512,545 341 ,696 854,241 276 150 1 84.500 461,250 369.000 246,000 615,000 I County Assem Member of the Executive Committee 135.000 90,000 225,000 180,000 1 20,000 300,000 lvlember of the County Assembly 47,520 79,200 63.240 1 05,600 105,600 Source: Salaries and Remuneration Commission The other benefits include: (a) Additional Allowances and Benefits The following additional allowances shall apply to State Officers serving in the County Government: (i) Governor Allowance: To be paid at the rate of Kshs.
80,000 per month (ii) Deputy Governor Allowance: To be paid at the rate of Kshs.

64,000 per month (iii) County Assembly Committee Sitting Allowances: To be paid to a County Representative as follows: Chairperson: Kshs.

5,000 per day of meeting(s)for a maximum of B sittings in a week subject to a maximum of KShs.

80,000 per month Vice Chairperson: Kshs.

4,000 per day of meeting(s)for a maximum of 8 sittings in a week subject to a maximum of KShs.

64,000 per month 2 l0l t0.

.t ,!

'F)-.

3.


Member: Kshs.

3,000 per day of meeting(s) for a maximum of 8 sittings in a week subject to a maximum of KShs.

48,000 per month (b) Other Allowances and Benefits The following allowances and benefits shall apply to the State Officers in the County Government as applicable: (i) Accommodation and Subsistence Allowances: To be paid at the existing rates applicable in the Public Service pending review by the Salaries and Remuneration Commission.
(ii) Airtime:- Airtime shall be provided as follows: 1 .

Governor: Kshs.

10,000 Per month 2.

Deputy Governor: Kshs.

7,500 per month 3.

County Assembly Speaker: Kshs.

10,000 per month (iii) Security: To be provided as advised by the lnspector General, National Police Service, where appl icable.

(iv) Official car: Chauffeur driven official car for Governor and Deputy Governor; or as may be reviewed by the Salaries and Remuneration Commission.
(v) Medical Scheme: Annual lVedical cover shall be provided per family for self, spouse and up to four chrldren below twenty five years, who are f ully dependent on the County State Officer as follows: Governor lnpatient Outpatient [Vaternity Dental Optical Deputy Governor lnpatient Outpatient N/aternity Dental Optical Kshs.

10 million Kshs.

300,000 Kshs.

150,000 Kshs.

75,000 Kshs.

75,000 Kshs.

5 million Kshs.

1 50,000 Kshs.

50,000 Kshs.

25,000 Kshs.


25,000 County Assembly Speaken County Representative and County Executive Officer: lnpatient Outpatient IVaternity Dental Optical Kshs.

1 million Kshs.

100,000 Kshs.

50,000 Kshs.

20,000 Kshs.

20,000 tat: Y(r :10 i -IU (vii) Retirement Benefits: A County State Officer shall serve on contract and be paid a service gratuity at the end of the term at the rate of 31o/o of annual basic pay for every year served.

times annual basic salary.


(viii) Group Life Assurance: Officers shall be covered for a value equivalent to three (ix) Work lnjury Benefit (W|BA): Work tnjury Benefits Act shall apply (x) Group Personal Accident: State Officers in County Government shall be covered for a value equivalent to up to three times annual basic salary.
(xi) Home, Utilities and Attendants: A County Governor shall be housed by the State and provided with all commensurate home utilities and home attendants as reviewed by Salaries and Remuneration Commission from time to time.

Other additional benefits awarded to State officers in County Government include: i).

Monthly transport Allowance of Kshs.

20,000; ii) Airtime of Kshs.

5,000 p.m 50i 2.


'r */i' Table 6: Remuneration and Benefits of State Officers in the Executive State Officer Gross Monthly Remuneration Package (KShs) Minimum Basic (60olo) Allowances (40o/") Basic (60%) Tota!

Allowances (40Vo') Tota!
Presidert of the Republic of Kenya 7 42,500 495,000 1,231 , 990,000 660.000 1,650,000 Deputy Presidenl 631 ,125 420,750 1 .051 ,87: 841,500 s61.000 1,402,500 Cabinet Secretary Attorney General Secretary to the Cabinet Chief of Defence Forces Principal Secretary Vice Chief of the Defence Forces Cornmander, Kenya Army Director General (NlS) lnspector General National Polrce Service rector of Public Prosecution Commander, Kenya Air force Commander, Kenya Navy Deputy Inspector General Kenya Police Service Deputy lnspector General Administratron Police Service 415,200 316,800 192,000 633,600 422,400 1,056,000 393.52 5 262,350 655,875 524,700 349,800 874,500 384,409 256.272 640,681 512,545 341 .696 854,241 319,500 213,000 532,500 426,000 284,000 710,000 Registrar of Political Parties 1 9,500 213,000 532,500 426,000 284,000 71 0,000 Source: Salaries and Remuneration Commission The other terms include: (i) A serving State Officer whose remuneration and benefits were set for the position they are holding before the establishment of the Salaries and Remuneration Commission by the relevant authority as provided by law, where such remuneration is above the set remuneration herein shall retain such remuneration.
(ii) A serving State Officer whose remuneration and benefits were set for the position they are holding by the Salarres and Remuneration Commission on interim basis before this Gazette Notice, where the remuneration is above the set remuneration herein, shall retain such remuneration at fixed levels unless reviewed by the Salaries and Remuneration Commission.
(iii) New State Officers shall loin at the minimum and those currently earning below the total gross minimum remuneration set herein, shall join the scale at the appropriate level.

(iv) State Officers whose current remuneration levels fall within the structure shall join the structure at the next immediate progression point.
(v) Unless otherwise specifically stated in this Gazette Notice, all allowances are herein consolidated and capped at forty per centum (40 per cent) of the set total gross remuneration.

F'.

: .

P, )-r : ib1 (vi) All other allowances and benefits not specified in this Gazette Notice cease to be payable.

(vii) Additional benefits accruing to the President and the Deputy President shall be reviewed by the Salaries and Remuneration Commission from time to time.
(viii) The salary structure existing before this Gazette notice ceases to apply forthwith.

pending review by the Salaries and Remuneration Commission.

(a) Benefits The following benefits shall apply to the State Officers serving in the Executive: (i) Accommodation and Subsistence Allowance:- Retain the existing rates (ii) Airtime:- Retain the existing rates pending review by the Salaries and (iii) Security:- To be provided as advised by the lnspector General.
National Police (iv) Official car:- Chauffeur driven official car; or as reviewed by the Salaries and (v) Medical Scheme:- The medical cover shall be provided per family for self, spouse and up to four children below twenty frve years fully dependent on the State Officer as follows: Rem uneration Commission.

Rem uneration Comm issron.

Service.

lnpatient Outpatient [Vaternity Dental Optical Kshs.

10 million Kshs.

300,000 Kshs.

150,000 Kshs.

75,000 Kshs.


75,000 The State Officers in the Defence Forces shall retain the existing medical scheme arrangement.

(vi) Retirement Benefits:- A State Officer serving on Permanent and Pensionable terms shall join a contributory pension scheme and contribute at the rate of 7.5o/o of basic salary with the employert contribution at the rate of 15% of basic salary.
A State Officer serving on fixed term shall serve on contract and be paid a service gratuity at the end of the term at the rate of 31o/o of annual basic pay for every year served.

(vii) Group Life Assurance:- Officers shall be covered for a value equivalent to three times annual basic salary.

(viii) work lnjury Benefit (wlBA):- work Injury Benefits Act shall apply where applicable.
(ix) Group Personal Accident:- State Officers serving in the Executive shall be covered for a value equivalent to up to three times annual basic salary where applicable.

52i i t't i }-i (x) Home, Utilities and Attendants:- The President and Deputy President shall be housed by the State and provided with all commensurate home utilities and attendants, subject to review by the Salaries and Remuneration Commission from time to time.
Table 7: Remuneration and Benefits of State Officers in the Judiciary Steh O{ffcor Crci iion$lv Rcmuncradon Podtg GShs) Basic (50%) Allowances (40%) Ibt l Bask (50%) Allowances (40qd Totrl Chief Justice s94,000 396,000 990,000 796,133 531.1 55 1,327,888 Deputy Chief Justice 492,800 328,533 821 ,333 740.121 493.414 1.233.535 Judqe ot the Supreme Court 475,200 31 6,800 792,OOO 131 .121 487.414 1,218,535 Judge of the Court of Appeal 393,525 262,350 655,875 673.655 449,104 1.122.759 Judge of the Hiqh Court 3 1 9,500 21 3,000 532,500 5M,361 362,912 907.279 Chief Maqistrate 267,300 178,200 445,500 420,86s 280,576 701 ,441 Senior Principal Maqistrate 200,475 133.650 334,125 288,000 1 92,000 480,000 Principal Maqistrate 135,000 90,000 225,000 21 6,000 144,000 360,000 Senior Resident Maqistrate 108,000 72,000 1 80,000 180,000 1 20,000 300,000 Resident l\4agistrate 74,250 49,500 123,750 1 14,000 76,000 190,000 Source: Salaries and Remuneration Commission The other terms include: (i) State Officers who are not accommodated within the structure will be fitted within appropriate entry points, taking cognizance of their qualifications and years of experience within the Judiciary Service Commission Scheme of Service as follows: 0 - 5 years at minimum entry point; 5 - 10 years at second entry level; 10 - 15 years at third entry level; 15 - 20 years at fourth entry level; and 20 years and above at the fifth entry level.
(i i) (iii) (iv) A new State Officer shalljoin the scale at the minimum level.

A serving State Officer whose remuneration and benefits were set for the position they are holding before the establishment of the Salaries and Remuneration Commission by the relevant authority as provided by law, where such remuneration and benefits is above the set remuneration herein shall retain such remuneration.
A serving state officer whose remuneration and benefits were set for the position they are holding by the Salaries and Remuneration Commission or any other authorized Government agency on interim basis before this letter where the remuneration is above the set remuneration herein shall retain such remuneration at fixed levels unless reviewed by the Salaries and Remuneration commission &r1 i ,o, o",, = AND FF r\,uNFFrA'o* ,,.-,rr,rs,.,, i flf, (v) A State Officer whose current remuneration level falls within the structure shall join the structure at the next immediate progression point.
(vi) All Allowances apart from those below are herein consolidated and capped at 40% of the set total gross remuneration above.

(vii) All other monthly remunerative allowances cease to be payable.

(viii) The salary structure existing before this letter ceases to apply forthwith.

A.

Duty Facilitation Benefits i) Airtime: Existing rates shall apply.

ii) Security: To be provided as advised by the lnspector General, National Police Service.
iii) Official Car: Chauffer driven cars for Chief Justice, Deputy Chief Justice and Judges.

B.

(i) (ii) (iii) Other Benefits Pension:- To maintain current rates.

Accommodation and Subsistence Allowances (Per Diem):- to be paid at existing rates pending review by the Salaries and Remuneration Commission.
Medical Scheme:- Annual tVedical cover shall be provided per family for self, spouse and up to four children below twenty five years, who are fully dependent as follows:- (a) Chief Justice, Deputy Chief Justice and Judges: lnpatient Outpatient lVaternity Dental Optical Kshs.

'10 million Kshs.

300,000 Kshs.

150,000 Kshs.

75,000 Kshs.

75,000 (b) Magistrates: ln-patient Outpatient lVaternity Dental Optical Kshs.

1 million Kshs.

160,000 Kshs.

50,000 Kshs.

25,000 Kshs.


25,000 iv) v) vi) vii) viii) Medical - Ex-gratia:- Shall be considered by the Judicial Service Commission on a case by case basis provided SRC is notified on the actual payment.

Group Life Assurance:- Retain existing rates and on expiry revert to three years equivalent cover of State Officers' annual basic salary.

Group Personal Accident:- Retain existing rates and on expiry revert to three years equivalent cover of State Officers' annual basic salary.
Work lnjury Benefit (WIBA):- Work ln.lury Benefits Act shall apply Home, Utilities and Attendants:- Chief Justice and Deputy Chief Justice shall be housed by the State and provided with all commensurate home utilities and attendants subject to review by the Salaries and Remuneration Commission from time to time.

54i i ,$1.

: -.
54i i ,$1.

: -.

'.,D : )-r ix) Car Loan:- Payable in line with staff entitlements by Judicial Service (Judiciary lVotor Car Loan Scheme Fund) Regulation 2012. x) House Mortgage:- ln line with staff entitlements specified Judicial Service (Judiciary lVortgages Scheme Fund) Regulation 2012. xi) Tax Compensation shall be paid to the twenty two Judges who were already serving before the promulgation of the Constitution of Kenya, 2010 at the current rates.
xii) Non-practice Allowance:- To be paid at the rate of Kshs.13,500 p.m. to all Judges and Kshs.

10,000 p.m. to all IVagistrates.

xiii) Special Judicial Duty Allowance: To be paid to the State Officers with additional responsibilities as per Judicial Service Commission approved schedule provided to the Salaries and Remuneration Commission up to a maximum of 150 officers !
.o,oo,ES AND FEMUNERA..N cor,,,rMrss,o, i$$ fF PROFILES OF MEMBERS OF THE SALARIES AND REMUNERATION COMMISSION ANNEX 2 I t Mrs. Sarah J.C Serem, EBS Sarah Jepkemboi Chumo Serern (EBS), the Chairperson of the Salaries and Remuneration Commission is a holder of an tVBA in Human Resource lVanagement and a BA degree (Sociology& Political Science), both from the University of Nairobi.

N/rs.
N/rs.

Serem is an experienced HR practitioner, having served as Head of HR Division for over 2O years in the Kenya Post Office Savings Bank.

She serves as a Non- Executive Director of lVumias Sugar Company Ltd and has sat in various school boards.

ln addition, she also serves in the Board of ADRA lnternational, one of the leading humanitarian agencies that operate rn 125 countries in the world.

As a philanthropist, IVrs.


Serem believes in empowering young people to realize their God given potential and has towards this end, helped many needy children .

She is one of the Board Nrlembers of the Kajiado Rehabilitation Centre, a rescue centre for the girl child.
DanielOmondi Ogutu Daniel Ogutu is the Vice Chairperson of Salaries and Remunerations Commission and holds a lVasters Degree from University of Eastern and Southern Africa Nrlanagement lnstitute and f\rlaasterich School of [Vanagement in Business Administration (IVBA) and Bachelors Degree in Education from Kenyatta University.

He has over twenty years of working experience in Human Resource lrrlanagement and Development.
He is currently an Assistant Commission Secretary-Human Resource lvlanagement at Commission f or Universrty Education.
He has a wealth of experience having worked with the Commission for Higher education (CHE), Agricultural Finance Corporation (AFC), tVinistry of State for Public Service, tVinistry of State for Provincial Administration and lnternal Security, Directorate of Personnel lVanagement (DPIV), and Teachers Service Commission -#" t^s - Ann Elizabeth Owuor Anne Elizabeth Owuor was nominated by the Assocration of Professional Societies of East Africa (APSEA) and appointed a Nllember of the Salaries and Remuneration Commission (SRC) on 17th December 2012 by the President of the Republic of Kenya.
She has lVasters in Science in Audit lVanagement & Consultancy from University of Central England Birmingham, a lVasters in Business Administration, a Post Graduate Diploma in Audit [Vanagement & Consultancy - University of Central England Birmingham and is currently pursuing a doctorate in Commerce-UNISA.
She is currently employed by Kenya Power Company Limited and has worked there since 1990, holding various managerial positions since 1997, including, Chief Accountant, lnternal Audit IVanager and Debt Control lVanager & Gender Coordinator.

Previously she worked in the Office of the President and Public Service Commission from 1984-1990. rn: Dtl: t"\ )-{' Isaiah Kubai lsaiah Kubai holds a Bachelor of Law (LLB HONS)from University of Nairobi.
He worked as a Banker from 19721o'1986 and served as a General Secretary of Banking, lnsurance & Finance Union (K).

He is an endowed resource persrrn in para-legal training of labour leaders.

Hon.

Peter Oloo Aringo Hon.

Peter Oloo Aringo holds a [Vlasters Degree from University of Toronto, Canada.

He also served as a Cabinet lr/inister in the following N/inistries:- lnformation and Broadcasting, 1980 - 1982 Environment and Natural Resources - 1982. lVinistry of Labour, 1985 - 1986.
IVinistry of Education, 1986 - 1991.

N/inistry of Nrlanpower Development 1991, and An Assistant IVinister for Education tn 1979 - 1980.

He initiated several parliamentary reform programs between the year 2300 and 2007.

Served six terms of 35 years as a IVlember of the National Assembly in the Parliame,nt of Kenya: 1914 -1919, 1979 - 1983; 1983 - 1988; '1988 - 1992;1997 -2002;2003 -2007 Jacqueline Mugo Jacqueline tt/ugo holds Bachelor of Law (LLB, Hons), f rom University of Nairobi.
She is the Executive Director/ Chief Executive, Federation of Kenya Emplo'yers.

She was admitted as an advocate of the High Court on 21st February 1983.

She was, awarded with the Honours of Order of the Grand Warrior of Kenya, (OGW) on 12th December, 2008 Jason Nambalu Namasake Jason Namasake holds a Bachelor of Law Degree (LLB Hons)f rom the University of Dar es salam and a lVasters (LLIV.)

from the University of London.


He is an Advocate of the ligh Court of Kenya and has been ir lecturer at the University of Nairobi - 1974 -'1980 and the Catholrc University of Eastern Africa from 2007.

Previously, Namasake worked at the Federation of Kenya Employers for twenty six years, where he served among other things in the Task Force to review Labour Laws the year 2000.
He also served as ,a member of the Akiwumr Tribunal to review terms and conditions of service for [Vembers of Parliament and staff of the National Assembly in 2009 Serah N. Kinyua Serah Kinyua holds a l\llasters Degree from University Connecticut U.S.l,.

in Public Administration (ti/PA) and Bachelors Degree in Literature in English, Political Science and Philosophy at lVakerere University in Uganda.
She served as a Chref Human Resource lVlanager at the Teachers Service Commis;ron between 1997 and 2002 She served attheTask force Reviewing Labour Laws representrng Teaching Service.

frr-D }-r 57 Brig (Rtd) Samue!

Ndururi Kirugi MBS., Brig Samuel N. Kirugr was nominated to the Commission by the Defence Council, Kenya Defence Forces.

He holds the degrees of B. Ed Hons and tVA of the University of Nairobi.
He retired from the former Kenya Armed Forces (now KDF) in January 2004 after twenty five years of service having gained wide experience in command, training, logistics and human resources administration for which he was awarded the lVoran of Burning Spear (tVBS) in 1994.

Since retirement he worked with the Armed Forces Pay Review Board (AFRPRB) until he was nominated to the SRC in lanuary 2012.
Sellistine Kiuluku Sellestine Kiuluku holds a lr/lasters in Business Administration - Strategic Nrlanagement f rom ESAIVI and IVaastricht School of lrrlanagement - Netherlands.

She further holds a BED degree from Kenyatta University and CPS.

She is the Director Human Resources and Administration with the IEBC.

Prior to the above appointments she served as the Director Human Resources and Administrative services with the Narrobi Water Company.

N/rs.
N/rs.

Kiuluku also worked as the Chief Human Resources and Administration lVlanager with the National Water Conservation and Pipeline Corporation (NWCPC).

Previously she served the National [Vuseums of Kenya (NIVK)as PrincipalAdministrative Officer and as a Personnel Officer with Agricultural Development Corporation (ADC).

tr/rs.

Kiuluku has a wealth of experience and competency in Human Resources N/anagement, Industrial Relations, Performance [Vanagement and Strategic Planning.
&/ -.\ {1, ID Titus M. Ndambuki, CBS, HSC Titus Ndambuki holds a IVasters degree in Economics from Williams College (USA), Bachelor of Philosophy degree in Economics from University of Nairobi and a Bachelor of Science in lVathematics and Statistics from the same University.

lr/r.
Ndambuki has also attended various courses in management and leadership skills from various institutes such as the Institute of Development Studies at the University of Sussex-England, Cardiff University College Population Centre, Wales (UK), the Economics lnstitute, Boulder, Colorado, Royal lnstitute of Public Administration (UK), and the University of lVanchester (UK) While working as the Programme Director for the Civil Service Reform Secretariat, he successfully steered the Public Service Reforms by providing guidance in translating policy guidelines on reform initiatives to specific and operational plans, tasks and targets in [Vinistries and Departments [Vr.
Ndambuki served as Permanent Secretary- t\rlinistry of State for Public Service from 7th December, 2005 to 8th January,2012.

During his tenure, tVr.

Ndambuki initiated a number of public service reforms including (a) performance contracting (b) training revolving fund (C) tt4edical Cover for civil servants (d) contributory pension scheme (e) Retirement age to sixty (60) years etc.

Besides other community development initiatives, lVr.
Ndambuki is a Board Chairman of Kikelenzu Secondary School and a trustee of Tumaini lnternational.

He was awarded the Chief of the Burning Spear (CBS)and Head of State Commendation (HSC)by His Excellency the President in recognition of his sterling performance in the Public Service.

5B l"t.F .

}-r MR. WANJUKI MUCHEMI, CBS, LL.B.

(Hons), MBA (Nbi), FClArb.

(U.K), cPs (K) A polished and experienced senior lawyer, tt/r.
tvluchemi is the Executive Charrman of the Seven Seas Technologies Group Board of Directors.

He is the immediate former Solicitor-General of the Republic of Kenya and the Principal Assistant to the Attorney-General, since N/ay 2003 and Founder, Director and Legal Advisor to Kenya Drabetes Nrlanagement and Information Centre (DN/ll Centre).

He was honoured by H.E.


the President in December 2005 with the Award of the Chief of the Order of the Burning Spear (CBS)(First Class)for dedicated service and initiatron of far-reaching reforms in the State Law Office and for his contribution in the integration negotiations in the East African Community.

He holds a lvlaster of Business Adminis'iration (N/BA) rn Strategic Nzlanagement, and a Bachelor of Laws (LL.B.

Hons.)

degree from University of Nairobi.


He is an Advocate of the High Court of Kenya, Fellow of The Chartered lnstitute o1 Arbitrators, London, U.K.

(FClArb.

), lVember of The lnstitute of Certified Public Secretaries of Kenya (CPS (K))and Law Society of Kenya.

lVr.

lVuchemi is confident and self-motivated and offers focused leadership.
He is keen on and has special interest in the fields of lnternational Law, Arbitration, Alternative Dispute Resolution (ADR), lVultilateral and Bilateral Finance and Trade Negotiations.

He has represerrted the country in various regional and international assignments leading the Kenyan Legal team to articulate the country's position in the international fora.
He has previously served in various Boards of State Corporations, and has been a member of several government committees and national tasks forces providing wise counsel in his legal capacity.

Mr. Joseph Kinyua, CBS Joseph Kinyua, the Permanent Secretary to the Treasury, is a non-voting mernber of the Board of Directors, Central bank of Kenya.

He holds a B.Sc (Econ.

), and an IVA (Econ from the University of Nairobi.

IVr.
IVr.

Kinyua's career began in '978 as an assrstant lecturer at the Universrty of Nairobi.

He.lorned the Central llank of Kenya in 1980 as an Economist and rose to the rank of Director of Rese;arch.

Between 1985 and 1990, he worked as an economist with the lnternatonal lVlonetary Fund before returning back to the Central Bank of Kenya.
He was appointed Financial Secretary to the Treasury in June 1995, a position he held untilJuly 1999 when he rejoined the Central Bank of Kenya as Director of Financial N/arkets.

He was appointed the Chief Economist of the Central Bank of Kenya rn October 2000.

ItIr.

Kinyua was appointed as the Permanent Secretary, tt/inistry of Finance in September 2002, a position he held until January 2003 when he was appointed Permanent Secretary in the lVinistry of Planning and National Development.
ln July 2003, he was appointerd Permanent Secretary in the IVlinistry of Agriculture where he served until July 2004 when he was reappointed Permanent Secretary to the ltzlinistry of Finance.

It/r.

Kinyua has served on several boards of State Corporations.

He is a member of the Programme Committee of the African Economic Rersearch Consortium (AERC) and Alternate Governor, World Bank Board of Governors.
trt ., F |-r' i;0 r (l (./ GEI{ERAT INFORMANOiI Physical Address Williamson House, 4th Ngong Avenue, 6th Floor P. O.

Box 43126- 00100 Nairobi, Kenya Tel: +254 202710071/73 Email : src@kenya.

go.

ke Website: www.src.

go.

ke Bankers Auditors Central Bank of Kenya Central Bank of Kenya Building Haile Selassie Avenue P.O, Box 60000-00200 Nairobi, Kenya Kenya National Audit Office Anniversary Towers, 4th Floor P.O.
Box 30084-00100 Nairobi, Kenya fiQ i seian,es rND BEMUNEBAToN coMMrssroN i @l tllar Ir-I lr t :l t I \' H.E PRESIDENT MWAI KIBAKI COi},IMANDER- IN CHIEF OF DEFENCE FORCF,S OF REPUBLIC OF KENYA POSES FOR A PHoT(X;RAPH WITTI SALARIES AND REMUNERATION COMMISSION AT LIARAMBEE HOUSE ON,Itr' APRIL 2013. lo'r 'Et' Salaries & Remuneration Commission Rcwrrditrt produ.lrvity Williamson House 6th Floo[ Nairobi, Kenya, P. O.

Box 43126 - 00100 .

Phone: (20)27L0071/73 Mobile: 07 31.


210065, 07 56 200065, 07 05 92637 7 Email: info@src.co.ke