Members of the National Assembly have directed Treasury CS John Mbadi to consult with Attorney General Dorcas Oduor on the viability of scrapping or reviewing the one-third salary rule following public cries by civil servants about taking home less than a third of their net salaries.
The MPs from the Public Accounts Committee (PAC) came up with the resolutions after a meeting held on Tuesday to look into the reasons why Kenyans were subjected to many deductions that ended up having an impact on their salaries.
Further, the watchdog committee is set to summon the National Treasury CS to explain why thousands of civil servants are taking home less than a third of their net salaries, with many having committed more than the legally allowed two-thirds of their basic pay to loan deductions and statutory obligations.
PAC attributed the steep reduction in take-home pay to increased deductions introduced under President William Ruto’s administration, including the Housing Levy, Social Health Authority contributions, and the revised National Social Security Fund (NSSF) rates.
During the meeting, the committee chairperson and Butere Tindi Mwale expressed concern over the growing number of government departments flouting the Employment Act, 2007, which is intended to protect workers from being left without adequate income after deductions.
Section 19(3) of the Employment Act, 2007, prohibits employers from deducting more than two-thirds of an employee’s basic salary.
''The law is no longer practical due to multiple tax deductions that have eroded workers' earnings,'' Mwale stated.
Civil servants have in recent months seen their pay slips shrink, with 1.5 per cent of gross pay deducted for the Affordable Housing Levy, 2.75 per cent for the Social Health Insurance Fund (SHIF), and increased contributions under the NSSF Act.
On his part, Lugari MP Nabii Nabwera warned that unless the issue is addressed, it will continue to feature in audit reports.
''This committee has asked the National Treasury—given the coming into effect of the NSSF Act, SHIF, and the housing levy—to engage the Attorney General for a way forward. If not addressed, this matter will remain an audit concern,” Nabwera stated.
The lawmakers, in solidarity, made a statement insisting that civil servants should not be punished for a situation beyond their control.
''These employees are not the authors of their misfortune. It is Parliament that passed these punitive taxes. If blame is to be placed, it lies squarely with MPs who sang ‘Hallelujah’ as the laws sailed through,'' maintained Funyula MP Wilberforce Oundo.
An analysis of the Integrated Personnel and Payroll Database (IPPD) for June 2023 revealed that 4,082 government officers earned less than one-third of their basic salary—contravening Section C1(3) of the Human Resource Policies and Procedures Manual for the Public Service (May 2016 edition), according to official records.
