Treasury report shows teachers paid better than civil servants

An analysis comparing teachers’ salaries with other public servants in the same job groups reveals that teachers could be better paid, even as the tutors continue with the push for an enhanced pay which started in 1962.

A document from the National Treasury briefing President Uhuru Kenyatta on teachers’ pay and why the 50-60 per cent awarded by the Industrial Relations Court is unsustainable shows that teachers are relatively better paid.

It is believed this particular advisory informed the President’s “Can’t pay, won’t pay” remarks when he first talked of the industrial unrest that has led to the closure of schools.

The document further shows that teachers’ wage bill has remained higher than that of other public sector workers since 2009/10 and obeying the court order would only hurt the economy by increasing recurrent expenditure.

According to the brief, “Teachers with a P1 certificate enter the teaching service at Job Group ‘G’ with a maximum gross pay of Sh28,304.” This is far much better than P1 teachers in private schools who earn an average gross salary of approximately Sh20,000.

A Chief Principal in job group R currently takes home a maximum gross monthly pay of Sh144,926, which the Treasury says is only comparable to what a senior lecturer in public universities who earns, Sh150,926.

“The academic requirement for one to be a senior lecturer is higher than that of a Chief Principal,” continues the brief.

It warns that implementing the 50-60 per cent award will see the Chief Principal earn a maximum pay of Sh302,000 higher than a full professor at Sh296,632, thus distorting the already harmonised salary of public workers.

The document continues: “It is therefore evident, Your Excellency, that teachers’ salaries are now comparable to other public servants and their peers, but with the award the harmonisation will be distorted.”

Unsustainable wage bill

Kenya’s public sector wage bill currently stands at 10 per cent of the country’s Gross Domestic Product (GDP) which the National Treasury says is high and unsustainable for an economy at the stage of development as Kenya’s.

“Our medium-term target is between 5 to 6.5 per cent which is the benchmark prevailing in most developing middle-income countries; the sub-Saharan Africa average is about 6.5 per cent indicating that Kenya has a long way to go in managing her wage bill to achieve Vision 2030 objectives of being a middle-income country,” read the document aimed at apprising the Head of State on the implication of the award to the economy.

Should the award be implemented, Treasury warns that the public wage bill will rise by Sh154.6 billion from the current Sh627.8 billion in the 2015/16 fiscal year to an estimated Sh782.4 billion (equivalent to 10.5 per cent of the country’s GDP) by 2016/17

“Nevertheless, the wage bill is still way above the sub-Saharan average of 6.5 per cent and will push Kenya’s wage into deeper levels of unsustainability.”

Consequently, the enhanced teachers’ pay would increase the recurrent expenditures from the current 69 per cent to 75 per cent, leaving the country with a paltry 25 per cent for development.

Public Finance Management Act of 2012 requires that the provision of the development budget should be not less than 30 per cent.

The Treasury has also warned that giving in to the teachers’ demand will have a spiral effect to other civil servants like police and prison officers.