Civil servants in Kenya’s national government are beginning 2026 on a positive financial note following the approval of a major pay rise by the Salaries and Remuneration Commission (SRC). The increase, valued at Ksh 2.06 billion, is backdated to July 1, 2025, and marks the first phase of the 2025–2029 remuneration and benefits review cycle.
The new salaries and allowances were approved during an SRC meeting held on December 19, 2025, and apply to civil servants across all grades in the national government. The changes were communicated through a circular shared by Central Organisation of Trade Unions (COTU) Secretary General Francis Atwoli, addressed to Public Service Principal Secretary Jane Imbunya.
According to the circular, the SRC deliberated on guidelines for negotiations under the fourth remuneration review cycle and approved adjustments to basic salaries and leave allowances for civil servants. The approved structure is to be implemented with effect from July 1, 2025, at a total cost of Ksh 2,065,701,510 for the 2025/2026 financial year.
Who Benefits from the New Salary Structure
The revised salary framework covers job grades ranging from CSG1 to CSG17, as well as other designated job groups within the public service. Under the new structure, basic pay and allowances are adjusted based on job classification, grade, and location.
Senior officers in higher grades, such as CSG4, will earn between Ksh 185,690 and Ksh 396,130 in basic salary. Those stationed in Nairobi will also enjoy house allowances of up to Ksh 140,600, reflecting the higher cost of living in the capital.
At the lower end of the scale, employees in grades such as CSG15 will see their salaries rise to between Ksh 21,120 and Ksh 26,250, with house allowances of up to Ksh 4,500.
Revised House Allowance Clusters
One of the key changes introduced by the SRC is the restructuring of house allowances into three clusters based on location:
- Cluster 1: Nairobi
- Cluster 2: Major cities and municipalities including Mombasa, Kisumu, Nakuru, Nyeri, Eldoret, Thika, Kisii, Malindi, and Kitale
- Cluster 3: All other towns and rural areas
Civil servants working in Nairobi will benefit the most from the revised house allowance rates, while those in smaller towns and rural areas will receive comparatively lower amounts. The SRC noted that this approach reflects cost-of-living differences across regions.
Introduction of Salary Market Adjustment (SMA)
The new framework also introduces a Salary Market Adjustment (SMA). This adjustment consolidates several previously separate allowances—such as entertainment, domestic servant, and extraneous allowances—into a single streamlined component.
According to the SRC, the SMA is designed to align public service pay with market realities, enhance competitiveness, and simplify administration. It also ensures that remuneration practices comply with constitutional and statutory requirements.
Improved Leave Allowances and Union Negotiations
In addition to salary adjustments, the SRC revised leave allowances, with the aim of compensating staff for accumulated leave and providing additional financial support during periods away from work.
For unionisable civil servants, salary increments will be implemented through the Collective Bargaining Negotiations (CBN) process. This allows unions and staff representatives to actively participate in finalising pay adjustments for their members.
Implementation and What Comes Next
The SRC has directed all government ministries, departments, and agencies to implement the new salaries and allowances without delay, including payment of all arrears backdated to July 1, 2025.
This pay rise represents Phase I of the fourth remuneration review cycle covering 2025–2029. The SRC has indicated that further reviews will be undertaken in subsequent phases to ensure public service pay remains fair, competitive, and responsive to economic conditions.
For Kenya’s civil servants, the adjustment offers timely financial relief and signals continued efforts to modernise and rationalise public sector remuneration.