SRC Announces Pay Increase for President, DP and Judges

In Summary

• The President, Deputy President, and top judges—are set for a pay increase starting in July. Their combined salaries will rise significantly, sparking concerns over an escalating public wage bill nearing Ksh2 trillion.
• The IEBC has requested Ksh61 billion from the National Treasury to fund the 2027 elections—Ksh20 billion more than in 2022—highlighting worries over inadequate resources and soaring election costs.
• The government continues to defend the Affordable Housing Levy, with officials stating that the Ksh65 billion collected annually is used to guarantee developers’ offtake rather than direct housing construction. 
• Kenya’s education sector is facing a Ksh43.4 billion budget deficit that threatens the Free Secondary Education program, exam administration, and school feeding initiatives for nearly 982,000 students.
• Private hospitals plan to suspend SHA reimbursements due to Ksh30 million in arrears, forcing patients to pay out-of-pocket and raising alarms about potential healthcare service disruptions.
• Kuscco has launched an auction for 80 houses and lands to recover loans from defaulters, following a forensic audit that exposed mismanagement and fraud leading to a Ksh12.5 billion insolvency.
• A new draft tolling policy is under public review, which will see motorists charged on major routes—such as the Nairobi bypasses, Thika Road, and Kiambu Road—to help fund road maintenance and development amid a projected funding gap.

The President, Deputy President, and top judges are set for a pay increase starting July, with the combined annual salary for the two top  offices rising from Ksh36 million to Ksh42 million. As reported by The Star, Treasury documents also indicate that judges' salaries will increase by Ksh500 million, bringing their total pay to Ksh3.6 billion. The move comes as the government continues to push for budget cuts and revenue mobilization to manage the rising public wage bill, which now stands at Ksh1.7 trillion. Other state officers’ salaries remain unchanged, fueling concerns over Kenya’s escalating wage bill—which is nearing Ksh2 trillion—and prompting debates amid ongoing fiscal consolidation efforts to manage revenue shortfalls and debt pressures.

In a report by the People Daily, the IEBC has requested Ksh61 billion from the National Treasury to fund the 2027 elections—Ksh20 billion more than what was spent in the 2022 polls—citing insufficient resources that hamper critical operations. Deputy CEO Ruth Kulundu decried the lack of a dedicated Elections Fund, which would provide financial independence, and highlighted that the cost of printing ballot papers alone is significant. The commission has introduced an online pre-registration module to ease voter registration bottlenecks and is pushing for amendments to allow early voting for 500,000 eligible voters hindered by current processes. Critics also point to high election costs driven by overseas ballot printing and corruption in procurement as factors contributing to Kenya’s status as one of the world’s most expensive electoral exercises. 

The government continues to face challenges in defending the Affordable Housing Levy, a year after the Affordable Housing Act, 2024, came into effect. Lands, Public Works and Urban Development CS Alice Wahome has explained that the Ksh65 billion collected annually will not directly fund housing construction but will be used to guarantee developers offtake. However, economists like Ken Gichinga argue that the levy reduces disposable income, weakening purchasing power and economic growth. According to The Standard, the government initially presented the levy as a savings scheme, later converting it into a tax to ensure funds are ring-fenced for housing. Despite public resistance, CS Wahome maintains that the levy is essential for achieving the government’s housing goals.

In a report by Capital Business, Kenya’s education sector is facing a financial crisis due to a Ksh43.4 billion budget deficit, which threatens the Free Secondary Education program, examination administration, and school feeding initiatives. The Ministry of Education has warned that without additional funding, the learning of over 982,000 secondary students and the smooth administration of national exams could be affected. Legislators have raised concerns over the government's preparedness, especially as the Competency-Based Curriculum continues to roll out.

Private hospitals under the Rural and Urban Private Hospitals Association (RUPHA), which serve 20 per cent of Kenya’s health facilities, have announced they will suspend Social Health Authority (SHA) reimbursements due to arrears of Ksh30 million, effective Monday, February 24, 2025. Consequently, patients seeking treatment at these facilities will have to pay cash, prompting urgent calls for either the immediate settlement of the outstanding arrears or a complete overhaul of the outpatient reimbursement model to reflect actual operational costs. Critics warn that prolonged payment delays and a non-functional claims system are undermining service delivery and could force essential healthcare services into crisis as reported by the People Daily.

The interim management of Kuscco has launched an auction for 80 houses and land across locations including Kitengela, Kisumu, and Thika, targeting members who defaulted on their mortgage repayments. Acting MD Arnold Munene explained that the properties will be sold at a reserve price of at least 75% of their market value as part of a move to recover loans issued under the Kuscco Housing Fund, which launched a Ksh1.5 billion real estate project in 2013. This action follows a PwC forensic audit that exposed years of mismanagement and diverted payments, plunging the entity into a Ksh12.5 billion insolvency and leading to the arrest of several former top officials. According to the Business Daily the audit also revealed that, as of December 2023, Kuscco had a loan balance of Ksh3.93 billion across 1,962 members due to inadequate provisions for loan losses, with further auctions expected as legal processes continue. 

In a report by the Business Daily motorists in Kenya will soon face toll charges on key routes—including the Nairobi bypasses, Thika Road, and Kiambu Road—as part of a new policy to generate additional revenue for road construction and maintenance amid a projected funding gap of Ksh1.29 trillion over the next five years. The draft tolling policy, currently under public review, aims to replace the inadequate road maintenance levy by setting charges based on maintenance costs, rehabilitation expenses, and user benefits, with provisions for discounts for local journeys, high occupancy vehicles, and electric vehicles. The initiative, which will initially target high-traffic corridors and later extend nationwide to routes like Mombasa’s Dongo-Kundu bypass, reflects the government's urgent need to secure sustainable funding for infrastructure improvements in an environment of mounting public debt and shifting vehicle trends. 

In a report by Nation, the Ministry of Health will slash intern doctors' monthly pay from Ksh206,000 to Ksh70,000 starting July 2025. This will affect 1,247 interns scheduled for posting, following an advisory from the Salaries and Remuneration Commission and a ruling by Lady Justice Maureen Onyango. This move aims to ensure all interns are accommodated within the approved budget under the Public Finance Management Act rather than reducing placements. It has prompted the Kenya Medical Practitioners Pharmacists and Dentists Union (KMPDU) to issue a 30-day strike notice with demonstrations set to begin on March 18, 2025, as the union denounces the decision as a step backward that undermines the 2017 Collective Bargaining Agreement amid broader funding challenges for critical healthcare programs.