Ruto, Gachagua pay hike exposes doublespeak on austerity policy

President Ruto and his Deputy Rigathi Gachagua at State House Nairobi June 13, 2023. [Stafford Ondego, Standard] President William Ruto, while urging "salaried" Kenyans to be patriotic and tighten their belts in light of a heavier tax burden starting today, will himself benefit from a pay increase proposed by the Salaries and Remunerations Commission. The President, along with his deputy Rigathi Gachagua and other top State officers, will see their payslips grow by 14 per cent. This growth comes at the expense of the rest of the Kenyan population, whose payslips will be reduced due to new deductions like the 1.5 per cent housing tax. According to the proposed plan, Ruto's monthly salary will increase from Sh1.44 million to Sh1.55 million in the first installment, effective from today. This amount will further rise to Sh1.65 million in July next year, marking the second phase of the increment implementation. Salary increase In a public notice soliciting feedback on the salary increases that will undoubtedly bring joy to top government officials, the SRC has clarified that this review is part of a four-year cycle. Gachagua's monthly entitlement will rise to Sh1.37 million, up from Sh1.23 million, effective this month. Furthermore, his salary will further increase to Sh1.4 million next year. During the first phase, MPS and senators will receive Sh741,000, a rise from the previous Sh710,000. Starting from July next year, their eventual pay will be Sh769,201. This pay raise shields MPs from the 35 per cent income tax imposed on those earning Sh800,000 and above, as per the Finance Act 2023. This amendment differs from the original proposal, which would have required workers earning Sh500,000 to pay 35 per cent income tax. In response to public outcry and outrage following reports of the proposed increment, President Ruto has urged the SRC to postpone the implementation of the new pay rates. Additionally, he assured civil servants that they would receive an average increase of seven to ten percent in their monthly remuneration, effective from today. "I have instructed the SRC to provide us with international best practices because we need to narrow the gap among all of us who work for the people of Kenya... until they return to me... those proposals for State officers will have to be put on hold," Ruto said during the launch of digital services in Nairobi. Relief to civil servants This news must have brought relief to civil servants who have been patiently awaiting higher salaries, as promised by Public Service CS Aisha Jumwa back in November of last year. These salary increments were supposed to be implemented within 100 days of her announcement. The government's decision, through the SRC, to grant public officers a higher salary increase of 14 percent while granting lower ranks in the public service a 7-10 per cent raise to alleviate the impact of the high cost of living, which equally affects all Kenyans, was not immediately clear. The Head of State did not explicitly reject the salary proposals, indicating that the new pay structure is still under consideration. Consequently, top State officers will enjoy protection from economic shocks, while others will bear the burden of increased taxes. "Salaried" Kenyans have faced the brunt of government criticism as Ruto defended the implementation of the housing tax, leading to them being labelled as "wadosi" in what appears to be a conflict between the employed and the unemployed. Responsibility In his defence of the proposal, the President argued that those who are employed have a responsibility towards the unemployed Kenyans, ensuring they have a roof over their heads. However, it is noteworthy that a significant number of employed individuals struggle to afford housing for themselves. Ruto has justified his government's tax measures as necessary to lift the country out of its current financial difficulties, emphasising the need to increase revenue and reduce expenditures. SRC's proposal comes amid tough economic times that are bound to grow tougher for Kenyans, courtesy of a shrinking spending power occasioned by more taxes and an increase in deductions. Besides the housing tax is the 16 per cent value-added tax on fuel that takes effect today, which promises a spiral impact on commodity prices. Unga prices are already beyond the reach of many and millers have warned that they will only go higher. Electricity, too, is hurtling towards the brink of unaffordability for the common folk. Government officials have been as vocal as opposition leaders about the runaway cost of living. As the opposition criticises Ruto's administration for doing little to stem the cost of living, the government has deflected blame on former President Uhuru Kenyatta for the situation. Gachagua has repeatedly said the public coffers are empty, even as Ruto bloated the Executive with chief administrative secretaries. In the thick of the "empty coffers" situation, the president has spent millions on foreign trips, with his office and Gachagua's exhausting their annual budgets in February, four months before the end of the financial year. "It is extremely insensitive and tone deaf to propose salary increases for anyone paid by the taxpayer," said Nairobi Senator Edwin Sifuna, who yesterday tweeted: "I haven't asked anyone for a pay rise." Kenyans on social media questioned the rationale for the proposed payments. Human rights activists Boniface Mwangi yesterday chided the DP for his remarks on inheriting empty coffers in light of the proposals that contradict the austerity measures the President urged months ago. "Don't forget Ruto hired 50 unnecessary Chief Administrative Secretaries," Mwangi posted on his social media accounts, criticising the move to hike the salaries of State officers. Jubilee blogger Pauline Njoroge chided Ruto for his promise to uplift those at the bottom of the ladder, in his campaign that painted Azimio la Umoja-One Kenya leader Raila Odinga as only interested in further enriching the wealthy. "The cost of living will start going way higher than it has been, as mwananchi is hit by all manner of taxes," she wrote on social media. "The President, his cabinet and other top state officers including MPs will have their salaries increased. In short, they won't feel the impact of the new taxes as they will be cushioned from that, unlike you mwananchi." bowino@standardmedia.co.ke

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