Public sector workers in Kenya earned a staggering Sh1.25 trillion in allowances over a three-year period, underscoring the significant burden of allowances on the public wage bill. With more than 960,000 workers receiving an average of Sh400 in allowances for every Sh1,000 earned, the scale of allowance expenditure is evident.
The breakdown of allowances reveals that house and commuter allowances accounted for Sh600 billion, followed by Sh200 billion for hardship and annual leave, and Sh125 billion for travel expenses. Additionally, Sh324 billion was allocated to other remunerative and facilitative categories, with Sh175 billion specifically designated for “other facilitative allowances.”
While allowances totaled Sh440 billion in the year ending June 2023, they nearly equaled the amount spent on development projects by the national government during the same period. Moreover, allowances exceeded the equitable share of revenues received by all county governments combined.
The Salaries and Remuneration Commission (SRC) has been proactive in addressing the unchecked payment of allowances, resulting in savings of Sh17.3 billion over four years through the streamlining of allowance frameworks. Despite these efforts, allowances still constitute a significant portion of the public wage bill, highlighting the ongoing need for reform and oversight.
