Public workers handed Sh45 billion in hefty salary hikes

Civil servants could get a pay rise within weeks as the Government races to bring sanity to the labour market ahead of Labour Day celebrations on May 1.

MPs have awarded teachers, lecturers, doctors and the disciplined forces Sh45 billion, a move that could see university students back to class.

Offices of the president and his deputy, collectively known as the Presidency, have collectively been granted Sh1 billion to spend in May and June for “coordination of State functions”.

The changes are contained in the last review of the spending plans - Supplementary Budget II, for the financial year expiring June 30, meaning the increments could be effected in May.

Reviewed plans

Some of the reviewed plans have already been spent, including the controversial payment of Sh1.5 billion to a businessman for compensation of land on which two public schools in Ruaraka sit.

Most of the realised funds have been withdrawn from the development of the standard gauge railway line, whose construction has been slowed in part by environmental concerns.

Several planned road construction projects have also been shelved to raise Sh34 billion, while another Sh7.7 billion has been taken from the allocation to counties' Equalisation Funds.

Kikuyu MP Kimani Ichung’wah (pictured), who chairs the budget committee in the National Assembly, presented the Supplementary Budget yesterday which will regularise the spending changes.

He said the re-allocations were a result of poor absorption among ministries and a reduction of unnecessary spending.

“…the second supplementary budget is mainly a reduction across all ministries which seems to have been necessitated by low absorptive capacity and the need to contain the budget deficit,” Mr Ichung’wah said.

Lecturers and other university staff have been on strike since March 1, in their push for implementation of a collective bargaining agreement that expired last year before full execution.

University staff have been offered Sh5.7 billion for improved salaries. Currently, some 605 specialised doctors working as lecturers are on strike, demanding backdated salaries amounting to Sh800 million aligned with the March 2017 collective bargaining agreement (CBA).

It is unclear if the doctor-lecturers will also benefit from the improved remuneration as specialists under the Ministry of Health.

Doctors and other medical staff grabbed the lion’s share of the re-allocations in which Sh18.1 billion was awarded.

Another Sh16.3 billion was handed to the Teachers Service Commission for recruitment of more staff and revised salaries after job evaluation.

Thousands of teachers were promoted to higher grades in the evaluation done jointly with the Salaries and Remuneration Commission to determine the job worthiness of work done by holders of various positions.

Ichung’wah’s committee also approved the proposals by the National Treasury to give Sh4 billion to the Interior ministry for raising police officers’ salaries.

Cash initially allocated for the construction of police houses worth Sh2.75 billion has however been withdrawn, possibly because of time limitations as the financial year is fast approaching the end.

Caused delays

Procurement for such capital intensive projects is often time consuming, and mired in controversy to cause delays.

Other beneficiaries in the revised spending plans include the Kenya Defence Forces, prison warders and farmers.

Soldiers will benefit from Sh1.6 billion in revised salaries while Sh1.3 billion has been allocated for the recruitment of additional staff in the department of correctional services.

Maize farmers could also look forward to off-loading their stocks following the allocation of Sh1.9 billion, part of which will be spent on acquisition of fertilisers.

The National Strategic Reserve, which is managed by the Cereals and produce Board is already selling the old stock of maize to create room for the new harvest.

Overall, the national budget will shrink by Sh17.6 billion following the spending plan changes.

Following the reviews, development budget was slashed by Sh40.8 billion while recurrent expenditure - mainly consisting of salaries, will soar by Sh23.2 billion.

Interest on loan repayments increased by Sh24 billion, the revised plans show, highlighting the problem of aggressive borrowing specifically from the international markets.

China has increased funding to the already completed Sh60 billion Mombasa-Nairobi railway line, but no explanation has been given for the additions.

However, ongoing works on the line relate to an extension into the Indian Ocean to cover 10 berths at the Mombasa Port, aimed at easing the offloading of cargo directly onto trains.

It is unlikely that the extension alone can gobble up so much money, considering the entire project cost was Sh327 billion.

MPs cautioned against proposals to chop the allocation to the Equalisation Fund, despite passing it this time, citing that it created a bad precedence.