SRC Plans Performance-Based Pay, Allowance Reforms and Real-Time Payroll Monitoring for Civil Servants

SRC Plans Performance-Based Pay, Allowance Reforms and Real-Time Payroll Monitoring for Civil Servants

NAIROBI, Kenya — The Salaries and Remuneration Commission (SRC) has unveiled sweeping proposals aimed at transforming the compensation structure of Kenya’s public service, including the introduction of performance-based pay, restructuring of allowances, and real-time monitoring of government payroll systems.

The reforms, announced by SRC Chairperson Sammy Chepkwony on Tuesday, June 16, are part of a broader strategy to improve productivity, enhance accountability, and contain the growing public sector wage bill that continues to place pressure on government finances.

Speaking during a public engagement on public sector reforms, Chepkwony revealed that the commission is working closely with key government institutions to develop a remuneration model that directly links employees’ earnings to their performance and output.

According to the SRC chairperson, the proposed changes are inspired by successful international models, particularly Singapore’s public service system, which rewards productivity and performance rather than relying heavily on automatic salary progression.

“When the President said we are moving to Singapore, I personally went there and looked at how they pay their workers. Surprisingly, they do not have things like automatic payment processes, which we have here in Kenya,” Chepkwony said.

The SRC boss explained that in Singapore, a significant portion of an employee’s income is variable and tied to measurable performance indicators. As a result, employees who exceed expectations receive substantially higher earnings than those who merely meet basic requirements.

“The more you produce, the more you get paid. If you sit back and do the minimum, the person who is doing more earns better than you and almost doubles your salary,” he stated.

The commission believes that adopting a similar approach in Kenya could help boost efficiency across ministries, departments, and state agencies while ensuring taxpayers receive better value from public services.

The proposal marks a significant departure from the traditional remuneration structure in the public sector, where salary increments are often determined by tenure, collective bargaining agreements, and periodic reviews rather than individual productivity.

In addition to performance-linked compensation, SRC is also pursuing major reforms in the area of allowances, which have long been a contentious issue within the public service.

Chepkwony disclosed that the commission has already completed the first two phases of a comprehensive allowances review and is now focusing on institution-specific benefits that vary across government agencies.

Under the new framework, SRC intends to assess whether certain allowances remain necessary or whether their value has already been incorporated into an employee’s job evaluation and salary scale.

“You find that when someone wants to increase their salary, they ask for an allowance for this or that. We will now say that was considered when grading your job. The value of your job already includes this allowance,” he explained.

The review is expected to streamline government expenditure while promoting fairness and consistency across public institutions.

Chepkwony also reiterated the importance of merit-based recruitment, arguing that attracting and retaining highly qualified professionals remains essential for improving service delivery.

Beyond remuneration reforms, SRC is collaborating with the Ministry of Public Service to strengthen payroll management through technology-driven solutions.

A key component of the plan involves ensuring that all public servants are paid through the Human Resource Information System (HRIS), a centralized digital platform designed to improve transparency and oversight.

According to the commission, integrating payroll processing into a single system will enable authorities to monitor salary payments in real time, eliminate irregularities, and ensure compliance with government compensation policies.

The proposed reforms come at a time when Kenya is seeking to enhance public sector efficiency while managing rising expenditure demands. Analysts say the success of the initiative will depend on the establishment of clear performance measurement standards, transparent evaluation processes, and effective implementation mechanisms.

If adopted, the reforms could usher in one of the most significant transformations in Kenya’s public service compensation system in decades, potentially reshaping how civil servants are rewarded and how government institutions deliver services to citizens.

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SRC Plans Performance-Based Pay, Allowance Reforms and Real-Time Payroll Monitoring for Civil Servants