Nairobi

SRC Approves 2026 Salary Increment for All Civil Servants

The Kenyan national government has commenced the 2026 financial year by implementing a significant salary and allowance increase for its civil servants, a raise retroactively applied from July 1, 2025. The adjustment follows the formal approval of Phase I of the 2025–2029 remuneration review cycle by the Salaries and Remuneration Commission (SRC).

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The Commission confirmed the new compensation structure in a meeting held on December 19, 2025. The details were disseminated via a circular from the Central Organisation of Trade Unions (COTU), signed by Secretary General Francis Atwoli, and addressed to Public Service Principal Secretary Jane Imbunya.

The circular, referencing earlier correspondence from the Ministry, stated: “The approved Basic Salary structure and Leave Allowance should be implemented with effect from July 1, 2025, at a cost of Ksh 2,065,701,510 for the Financial Year 2025/2026.” This directive mandates all relevant government ministries, departments, and agencies to process the changes and issue backdated payments promptly.

The revised pay structure spans all civil service grades from CSG1 to CSG17, incorporating a consolidated Salary Market Adjustment (SMA). This SMA streamlines several previously separate allowances—including entertainment, domestic servant, and extraneous allowances—into a single adjustment designed to better align public sector pay with prevailing market conditions.

A notable change is the restructuring of house allowances into a three-cluster system based on geographic cost of living:

Cluster 1: Nairobi City.
Cluster 2: Major cities Mombasa, Kisumu, and Nakuru, alongside municipalities Nyeri, Eldoret, Thika, Kisii, Malindi, and Kitale.
Cluster 3: All other areas nationwide.

This tiered system results in a higher house allowance for employees stationed in Nairobi, with progressively lower rates for Clusters 2 and 3. For illustration, a senior civil servant in grade CSG4 will now earn a basic salary between Ksh 185,690 and Ksh 396,130, with a Nairobi house allowance of up to Ksh 140,600. Conversely, an employee in grade CSG15 will see a basic salary range of Ksh 21,120 to Ksh 26,250, with a house allowance up to Ksh 4,500 in Nairobi.

Leave allowances have also been revised under the new framework, intended to provide enhanced financial support during leave periods.

For unionisable staff, the final implementation of salary adjustments will be concluded through the established Collective Bargaining Negotiations process, ensuring staff representatives are involved.

In its communiqué, the SRC emphasized that the overhaul aims to ensure public service remuneration remains competitive, adheres to constitutional principles, and responds to economic realities. This pay rise initiates the fourth comprehensive remuneration review cycle. The Commission has indicated plans for subsequent phases between 2025 and 2029 to continually evaluate and adjust public sector compensation.