Ruto Adds Twist to SRC Pay Rise Saga, 32 Businesses Shut Down in Crackdown

Ruto

Hello and welcome to the Evening Brief Newsletter where we are keeping a check on the monthly cheques.


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Pay Rise Rejected

For the first time in a really long time, politicians have come out to say no to a chance of pocketing more money.

Yesterday, the Salaries and Remuneration Commission (SRC) confirmed that beginning at the end of this month, lawmakers and other senior state officials save for the President and his deputy will pocket higher pay.

As expected, the public, whose younger generation has been on the streets protesting a higher cost of living and punitive tax burden, was up in arms calling for a pay cut for the officials, members of Parliament, and senators included.

Presidential Directive: Almost 24 hours after the confirmation, President William Ruto directed the National Treasury to review the gazette notice SRC issued last year recommending the pay rise.

State House Spokesperson Hussein Mohammed communicated that Ruto had emphasised that the executive and all arms of government to live within their means in light of the withdrawal of the Finance Bill, 2024.

Hussein's Concise Words: "President Ruto has directed the National Treasury to review the Gazette Notice dated August 9, 2023, from the Salaries and Remuneration Commission (SRC) regarding the remuneration & benefits for State officers."

"In light of the withdrawal of the Finance Bill 2024 & the fiscal constraints expected this financial year. The President has emphasised that this is a time, more than ever before, for the Executive and all arms of government to live within their means," he explained.

MPs in Parliament during the Budget 2024 reading.
MPs in Parliament during the Budget 2024 reading.
Photo
Parliament

The Figures: Senior State officials from Prime Cabinet Secretary Musalia Mudavadi down to members of the County Assembly were to enjoy fattened pockets of varying degrees.

Mudavadi's pay was to rise by Ksh33,000 to Ksh990,000. The pay for Head of Public Service Felix Koskei and Secretary to the Cabinet Mercy Wanjau was to swell by Ksh33,000.

Principal Secretaries and Inspector General of Police Japhet Koome, National Intelligence Service (NIS) Director General Noordin Haji salaries had also been raised by Ksh27,325 each to hit Ksh819,844.

In Parliament, both speakers of the houses were to get an increment from Ksh1,185,327 to Ksh1,208,362 and their deputies from Ksh948,261 to Ksh966,690. Leaders of the Majority and Minority in both houses were to see their monthly remunerations increased from Ksh784,768 to Ksh800,019.

New salaries for MPs and Senators will be Ksh739,600 from the past Ksh725,502.

For the full breakdown, see my colleague Washington Mito's coverage here.

Politician's Rejection: Hours after the announcement, several politicians, especially MPs and Senators, announced their displeasure with the pay hike, with some rejecting it altogether. Here are quotes of MPs rejecting the bill.

  • "MPs and other state officers should not be added even a coin. It’s sad to increase salaries while Kenyans have no jobs, Kenyans have no capital to start businesses, Kenyans have no money to pay school fees, No money for medication. Say no to salary increments," Embakasi East MP Babu Owino told his 1.4 million followers.
  • "Given the current state of affairs in our country and with the ongoing demonstrations and economic instability, in my view, this is not the right time to prioritize any salary hikes for public officials. If anything we should be having a discussion on salary reduction but not hikes. It is crucial that we focus on reducing unnecessary expenditures and concentrating on strategies to restore peace and strengthen our economy... Therefore as a conscientious Kenyan and an elected Member of Parliament, I firmly oppose the proposed salary increase. Our immediate concern should be the welfare of the nation and its citizens, ensuring stability and sustainable progress," Aldai MP Marianne Kitany.
  • "The SRC is proposing to add Ksh14,000 to my salary. I didn’t ask for it. I don’t need it. It’s still money, in a country where many have no income, but for perspective, I pay close to 300k in income tax every month. I will not fight for Ksh14,000 extra when the whole country is saying we need to lessen taxpayer burden. I don’t want this Ksh14,000," Nairobi Senator Edwin Sifuna.
  • "If it means taking a pay cut, we as members of parliament have been told that we will never do it. We don’t have an option, we must do it ...The yearly increment that is being discussed, I saw it being reported or misreported that we are now going to earn more; SRC continues to be silent about it. We must make a resolution and say that we reject even that one in light of the financial situation," Senate Majority Leader Aaron Cheruiyot.
  • "It is not right just as it is scandalous for the SRC to imagine increasing the pay of State Officers. This Commission needs to be serious!" Homa Bay Town MP Peter Kaluma.
  • "We shouldn't discuss pay raises when the economy is performing poorly. Let's avoid burdening Kenyans with loans and excessive taxes for salary increments. As a member of parliament, I haven't asked for more pay. SRC, I decline the pay rise," Busia Woman Representative Catherine Omanyo.
  • "Some things almost look like a setup. We are in a crisis, and the SRC is proposing an increment of Ksh14,000. Do they want us to be beaten up so that they can be happy? I don't want that," Lang'ata MP Jalang'o.
  • "The salary increases for state officers including governors are absolutely unwarranted at this time," Siaya Governor James Orengo.
  • "I want to go on record that I, together with my deputy Hon Mbui, have rejected in totality the purported salary increment by the SRC and we are asking the National Treasury to re-allocate that money," National Assembly Minority Leader Opiyo Wandayi.

Voices From Opposition: Wiper Leader Kalonzo Musyoka and his co-leaders in Azimio la Umoja asked the Treasury to reallocate the money towards hiring Junior Secondary School (JSS) teachers among other endeavors.

"We also note with concern the intention to divert the public attention from the real issue by purporting to adjust the salaries of senior state officers, Members of Parliament, Members of County Assembly, and governors upwards at a time when the country's economy is not doing well," he stated.

"We urge our members to reject the salary increment. We call on all Kenyans to unite and defend the values of justice, democracy, and peace which this country has ignored."

Governors View: Council of Governors Chairperson Anne Waiguru asked SRC to withdraw the pay rise since the country is "currently facing harsh economic times that will require austerity measures and fiscal discipline and responsibility."

"In view of this, the Council of Governors urges the Salaries and Remuneration Commission to immediately withdraw the proposed salary increments for all County State Officers including; Governors, Deputy Governors, and County Executive Committee Members," COG stated.


Losing Illegal Business

Electricity and Petroleum Regulatory Authority(EPRA), on Wednesday, announced that it shut down 32 gas refilling businesses in a year-long investigation.

The LPG facilities, which were located in Nairobi, Mombasa, Nakuru, and Eldoret, were closed in an operation between June last year and June this year.

Why It Matters: In a press briefing shared with Kenyans.co.ke, the regulator explained that the illegal businesses, which were repurposing gas cylinders of existing brands, cause the legitimate companies Ksh1.2 billion.

In total, 26,000 cylinders were recovered in a span of three years.

EPRA Director General Daniel Kiptoo speaking in February 2024
EPRA Director General Daniel Kiptoo speaking in February 2024
EPRA

Daniel Kiptoo, EPRA Director General, said the impounded cylinders will be returned to brand owners to help increase the quantity of genuinely refilled LPG cylinders in the market. The first batch of 6,000 LPG cylinders has been returned to brand owners.

The Numbers: EPRA’s latest Biannual Statistics  Report shows tax waivers on LPG fuelled LPG consumption by eight percent to stand at 360,594 metric tons. The use of LPG is set for triple-fold growth as the government implements the LPG Reticulation Project, which aims to install LPG reticulation kits in 5,000 public schools by the end of the year.


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This newsletter was written by Derrick Kubasu and edited by Brian Muuo.

Washington Mito contributed to the content.

Graphics prepared by Adongo Kyalo.

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